A bankruptcy judge reviewing Binance.US’s Voyager buyout deal is doubting SEC’s objection and asking for specifics on the regulator’s decision.
During the March 2 hearing, U.S. Bankruptcy Judge Michael Wiles said, “If there are reasons to be concerned here, I need to hear specifics,” commenting on SEC’s objection to the Binance-Voyager deal filed on February 22.
Related: SEC objects to Binance.US’s Voyager deal
On December 19, a restructuring plan was presented to the court to bring Voyager out of Chapter 11 bankruptcy. As per the plan, crypto exchange Binance.US would acquire Voyager’s assets for $1.02 billion. Voyager stated that this option was the most favorable bid for its assets. The court deliberated on the proposed plan.
Related: Binance.US Bounty
As Reuters reported, when asked whether the sale of Voyager violated the securities laws, SEC attorney William Uptegrove, who was present at the March 2 hearing, didn’t give a clear answer:
We can’t take a position at this point. The SEC is a deliberative body, and it’s process is a nonpublic one by federal law.
Judge Wiles hit back:
Deliberative is one thing, but what have you done? If there are reasons to be concerned here, I need to hear specifics.
Based on current crypto prices, Voyager’s sale is valued at $1.3 billion. Still, even if Wiles confirms the plan, the sale cannot be completed without final approval from the SEC and the Committee on Foreign Investment in the United States (CFIUS). However, the deal has raised doubts with CFIUS as well. The committee did not formally object to the Binance sale, but warned that its ongoing review of national security concerns could block the deal.
On March 3, Judge Wiles will hear further arguments on the bankruptcy plan.
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