The United States regulators are trying to obstruct the process of the sale of bankrupt Voyager Digital to one of the major players in the field of crypto trading Binance US.
According to fresh reports, United States officials are trying to block this trade citing the Chapter 11 plan. Assistant United States Attorney Larry Fogleman has raised strong objections to the legal protections included in the deal mentioned in the Chapter 11 plan. Larry Fogleman has presented documents related to this deal in front of United States Bankruptcy Judge Michael Wiles. The judge has accepted this petition and the court will hear this case on 15 March.
The reasons behind these objections are not fully cleared yet but according to the Securities and Exchange Commission and other federal lawyers, the plan could shape the future of upcoming bankruptcies. The SEC also mentioned the reports regarding Binance CEO Changpeng Zhao’s claim that Binance US operates as an independent partner.
Earlier in February 2023, it was reported that the United States SEC and New York’s major regulators have opposed the $ 1 billion deal of Binance US with Voyager. In that report submitted in court, it was mentioned that “Laws governing the unregistered offer and sale of securities may be broken by the Voyager transaction.”
Previously, New York Attorney General Letitia James also showed her resentment in the deal. She said that Voyager has illegally operated a digital currency business in New York without any registration.
However, Judge Michael Wiles wants to continue the process of acquisition by Binance despite various objections raised by regulatory bodies. The reason he provided for this is something like handing a sword in the hand of one authority over any transactions.
It will be interesting to see the final decision of Michael Wiles on this issue. After the collapse of three major players in the banking sector of the United States, agencies and monitoring authorities are on alert mode. They are analyzing every new development that is taking place in the United States.
