An SEC attorney said both parties involved in Voyager Digital’s bankruptcy case fall under securities regulations, according to a Bloomberg report on March 3.
Binance.US, Voyager face securities regulations
William Uptergrove, an attorney for the US Securities and Exchange Commission, said SEC staff believe Binance.US is operating an unregistered securities exchange.
Binance.US is currently attempting to purchase Voyager Digital’s assets, a course of action that the SEC has objected to back in January. Binance.US additionally faces an investigation by the SEC, according to earlier court proceedings cited by Bloomberg.
Uptergrove also said Voyager’s planned recovery token should be regulated as a security — which would put the assets under the SEC’s jurisdiction.
Uptergrove’s statements are not public and do not represent the views of the SEC as an entity. However, his statements carry weight because they represent the opinion of SEC officials—that is, they do not represent his personal views alone.
Voyager bankruptcy proceedings continue
Before that, on March 2, the judge in charge of the case criticized the SEC’s objections to the deal. U.S. Bankruptcy Judge Michael Wiles said the regulator should “stop[ped] each in his own way’ without providing a way to address his concerns.
At the time, Uptergrove declined to take a position on whether the sale of Voyager’s assets violated securities laws. The judge demanded a more specific answer.
In response to the increasingly complex situation, Binance CEO Changpeng Zhao floated the possibility of abandoning the deal on March 3. He wrote on Twitter: “maybe we should pull out?” Still, he expressed support for the deal if it is ultimately cleared.
The purchase of Voyager assets by Binance.US must be cleared by the SEC, even if the deal is approved by all other parties — including the companies, creditors and a judge.
Voyager customers voted overwhelmingly in favor of the plan 1st March.
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