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Criticism against SEC without evidence, U.S. bankruptcy judge approves Binance US acquisition of bankrupt lending platform Voyager

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Criticism against SEC without evidence, U.S. bankruptcy judge approves Binance US acquisition of bankrupt lending platform Voyager

Since filing for bankruptcy in July last year, Voyager has experienced impersonation by SBF, bankruptcy by FTX, and obstruction from US regulatory agencies. After a four-day hearing, bankruptcy judge Michael Wiles approved Binance.US's $1 billion acquisition of Voyager, despite opposition from the US Securities and Exchange Commission (SEC).

US Judge: SEC Lacks Evidence

Michael Wiles stated:

In an industry where other companies have engaged in improper conduct, Binance.US faces rumors and speculation of its own potential misconduct, but I have not received any evidence that Binance.US has misused user assets. I cannot indefinitely freeze the entire case when the regulatory agency is also unsure if there are issues with the transactions. I must rule on the proposed transactions.

According to the proposed sale agreement, Voyager's attorney representatives stated that if the acquisition is successfully completed, creditors are expected to receive a 73% compensation. However, if Alameda's previous lawsuit against Voyager demanding the return of the approved $445.8 million is successful, the compensation ratio would decrease to 48%.

Over 167,000 Voyager users have already registered on Binance.US.

Wiles also criticized the poor regulatory environment in the crypto space:

The current regulatory environment can only be described as uncertain, and in my view, the future regulatory environment is almost entirely unpredictable. Creditors and users have been unable to access their crypto assets for months, and they deserve a resolution in this case.

Still Variables?

The Block reported that the Committee on Foreign Investment in the United States (CFIUS) may still review the Voyager acquisition.

Binance.US tweeted that they are pleased the US Bankruptcy Court for the Southern District of New York has approved the acquisition, with the goal of returning assets to users as soon as possible, and they warmly welcome Voyager users to Binance.US.