In a recent court hearing, a U.S. judge criticized the Securities and Exchange Commission (SEC) for lacking specificity in its objection to the proposed Voyager-Binance.US deal. The judge has demanded that the SEC provide more concrete details regarding its concerns, reprimanding the regulator for wanting to "stop everybody in their tracks" without offering a solution.
Voyager Digital's restructuring plan, which involves Binance.US acquiring Voyager's assets for $1.02 billion, is currently under consideration by the court. However, the SEC filed an objection to the sale last month, citing potential violations of securities laws due to the crypto transactions involved in redistributing funds to Voyager account holders.
During the court hearing, the SEC attorney was unable to provide a clear stance on whether the plan had broken the law, prompting Judge Michael Wiles to demand more specifics. He emphasized the need to hear valid reasons for concern, indicating that the SEC's lack of clarity could potentially lead to the deal being approved.
This latest development highlights the growing tension between regulators and the crypto industry, as the latter continues to gain mainstream acceptance and adoption. As the case unfolds, market participants will be closely watching to see how it may impact future M&A deals in the crypto space.
The sale requires court approval, along with the green light from the Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS), which is carefully examining the deal to determine if it involves foreign investment and could potentially raise national security concerns.
Judge Wiles is scheduled to hear further arguments on the bankruptcy plan on March 3rd.
The proposed Binance.US plan would transfer Voyager customers to the crypto exchange, allowing them to withdraw their funds for the first time since the platform declared bankruptcy in July of last year.
According to a poll of 61,300 account holders with claims against the crypto lender, the plan was favoured by an overwhelming 97% of Voyager's customers, who would reportedly recover over 70% of their deposited value at the time of the bankruptcy.
Also read - 24 Hrs Crypto Update, March 2: Global Cryptocurrency Market is undergoing a Bloodbath
