The court judge ruled that the SEC agency should not be allowed to interfere in the bankruptcy proceedings case.
Voyager Digital was a popular crypto lending platform but failed to survive in 2022, citing financial exposure to bad companies. Voyager filed for bankruptcy under the chapter 11 code and later FTX crypto exchange decided to acquire this platform but FTX exchange itself went bankrupt in Nov 2022. Since Dec 2022, BinanceUS has been in talks with the Voyager bankruptcy team to acquire Voyager & restructure the platform.
Around a week ago, In the Voyager-BinanceUS deal, the United States Securities and Exchange Commission (SEC) filed its objection and urged the court to terminate the deal but SEC failed to provide any critical information or reason in its objection.
In the latest hearing, Michael Wiles, a judge in the Southern District of New York, said that the court will not allow the SEC agency or its staff to interfere with the proposals to create a new token that would help repay customers.
According to the judge, the SEC can pursue Voyager or BinanceUS in the future but it is wrong to stop anyone on their proposals in the court.
Experts known in the Voyager-BinanceUS deal believe that deal may not easily get green signal because New York state Securities body is still strong with its own objections in the court.
SEC vs Crypto
The past several year’s SEC ruling on the crypto sector showed that the SEC was purely rude over the crypto sector. Many times, SEC chairman Gary Gensler said that changing the backend technology behind any asset will not change the class of that asset.
In Feb of this year, the SEC showed very strict action against several crypto companies e.g $30 Million fine on the Kraken exchange, Wells notice to BUSD stablecoin issuer Paxos, etc.