US judge condemns SEC for opposing Voyager Digital’s deal with Binance.
A U.S. judge has countered SEC action to oppose the deal between crypto lender Voyager Digital and crypto firm Binance. In December 2022, Voyager announcement that it had selected Binance.US as the highest best bid for its assets. The deal is worth $1.022 billion and should help the crypto lender’s customers access their funds as soon as possible. Under the agreement, the U.S. arm of the crypto exchange was to make a good faith deposit of $10 million while reimbursing Voyager for specific expenses up to $15 million. After that, all assets and clients of the lender will be transferred to Binance. However, the success of the deal is subject to the approval of a bankruptcy court, the SEC and the Committee on Foreign Investment in the United States (CFIUS).
Voyager’s challenges began in July 2022 due to its exposure to now-defunct hedge fund Three Arrows Capital. He first suspended withdrawals before filing for bankruptcy due to cash flow issues. Last week, an attorney representing Voyager Digital said plans to close the deal with Binance were on track. According to the lawyers, 97% of the votes in the case are in favor, which means that the offer could eventually be successful. Still, the SEC has a firm grip on the deal between Voyager and Binance, noting:
“Transactions in crypto assets necessary to effect rebalancing, the redistribution of such assets to account holders, may violate the prohibition in section 5 of the Securities Acts 1993 against the offering, selling or unrecorded delivery after the sale of securities. The onus is on debtors to present credible evidence that the provisions of the plan are workable and do not violate applicable law.”
US judge questions SEC for opposing Voyager deal with Binance
According to court documents, the SEC raised concerns about Voyager Digital and Binance. He said the crypto lender cannot prove that the deal with Binance or other crypto transactions complies with US securities law.
As Binance’s bid to buy Voyager hits hurdles, the latest update is the judge’s reaction to the SEC casting vague doubts on the proposed sale. Judge Michael Wiles said on Thursday that the Commission had asked for the bid to be suspended without specific explanations.
Additionally, SEC attorney William Uptegrove did not provide specific information on whether the Commission believes the sale violated U.S. securities laws. Instead, he replied:
“We cannot take a position at this stage. The SEC is a legislative body, and its process is non-public under federal law. »
The judge, however, seemed unhappy with Uptegrove’s response. He insisted that the lawyer give precise information “if there is reason to be worried”.
Ibukun is a crypto/finance writer interested in conveying relevant information, using non-complex words to reach all kinds of audiences. Besides writing, she enjoys watching movies, cooking and exploring restaurants in the city of Lagos, where she resides.