The bankruptcy judge handling the Voyager Digital case has reportedly accused U.S. securities regulators of ambiguous reasons for objecting to the cryptocurrency lending firm’s proposed sale to Binance.US.
During a hearing in New York court on March 2, U.S. bankruptcy judge Michael Wiles said the SEC was essentially asking to "stop everyone in their tracks," without explaining how to resolve the issue, Reuters reported. concerns about the deal.
The court is considering a restructuring plan announced on Dec. 19 to lift Voyager out of Chapter 11 bankruptcy that would see cryptocurrency exchange Binance.US acquire its assets for $1.02 billion Voyager said at the time, This selection represents the "highest and best offer for Voyager" for its assets. "
However, the SEC disputed the sale on Feb. 22, claiming that certain aspects of the restructuring plan may violate securities laws, namely the need for crypto transactions to rebalance funds for redistribution to Voyager account holders. Wiles shot back: "It's one thing to be thoughtful, but what have you done?" adding, "If there's cause for concern here, I need to hear the specifics." The sale requires court approval and approval from the U.S. Securities and Exchange Commission and the Committee on Foreign Investment in the United States (CFIUS), which is investigating whether the deal would require foreign investment and raise national security concerns.
Judge Wiles will hear ongoing arguments about the bankruptcy plan on March 3. The proposed Binance.US plan would move Voyager customers to the cryptocurrency exchange. Those customers will be able to withdraw their funds for the first time since the platform filed for bankruptcy last July.
According to reports, by the time of bankruptcy, customers will get back more than 70% of the value of their deposits. In a poll of 61,300 account holders who filed claims with cryptocurrency lenders, 97% of Voyager customers supported the program.
