At the March 2 hearing, Judge Michael Wells noted the ambiguity of the SEC‘s position regarding the sale of Voyager Digital’s assets on the Binance.US exchange and asked for explanations from the agency. Reuters reports.
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In February, the SEC and the New York State Department of Financial Services stated that the $1.02 billion deal could violate securities laws.
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When asked by Wells whether the debt restructuring indeed violated the law, SEC attorney William Aptgroov did not provide a clear answer.
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“We cannot take any position at this time. The Securities and Exchange Commission is an advisory body, and its process is non-public in accordance with federal law,” he said.
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The judge pointed to the inadmissibility of such an approach following objections to debt restructuring.
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“Consulting is a good thing, but what have you done? If there are reasons for concern, I need to hear details,” said Wells.
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The sale of Voyager’s assets will proceed only if the court, the SEC and the Committee on Foreign Investment in the United States approve the deal.
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Judge Wells is due to hear further arguments on Voyager’s debt restructuring on March 3.
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In January, the SEC previously opposed the deal, casting doubt on Binance.US’s ability to finance it. Voyager, at the time, called these assertions “hypocritical.”
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In December 2022, Binance’s U.S. unit offered the highest price for the debtor’s assets — $1.002 billion and an additional $20 million in potential upside.
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Voyager Digital users will be able to recover a portion of their funds through Binance.US accounts.