Judge Wiles Confronts SEC Over Voyager's Binance Deal

Judge Wiles vs SEC: The Showdown

In a spirited courtroom drama that could rival any binge-worthy series, U.S. Bankruptcy Judge Michael Wiles didn’t hold back during the March 2 hearing regarding Voyager Digital’s proposed sale to Binance.US. With the intensity of a referee in a championship game, he took the Securities and Exchange Commission (SEC) to task over its vague objections.

A Proposal Under Fire

The judge’s frustration stemmed from the SEC’s claim filed on February 22—essentially telling everyone involved to “hit the brakes” without providing a clear path forward. Why stop the show without clear directions? That’s like calling a timeout in football just to change the rules on the fly.

The Numbers Game

Let’s break it down: the restructuring plan revealed December 19 aims for Binance.US to acquire Voyager’s assets for a staggering $1.02 billion. Voyager touted this deal as the “highest and best bid,” turning heads in the court and beyond. But the SEC had its hesitations, citing potential violations of securities laws due to the needed crypto transactions for fund reallocation to account holders.

Deliberative or Delayed?

With attorney William Uptegrove representing the SEC, the conversation took a turn for the awkward when Judge Wiles probed whether the commission believed the plan flouted the law. The SEC’s noncommittal answer left Wiles incredulous: “Deliberative is one thing, but what have you done?” It’s hard to win an argument when your biggest weapon is ambiguity.

Regulatory Roadblocks

Not only does this sale need the green light from the court, but it’s also under the watchful eyes of the Committee on Foreign Investment in the United States (CFIUS). Why? To make sure this acquisition doesn’t magically turn into an international incident. Talk about red tape! It’s like trying to get through a haunted house—run into a wall, turn around, face another obstacle, all while trying not to scream.

Customers in Awaiting

For Voyager’s customers, the stakes are incredibly high. The proposed plan could allow them to finally access their funds, which have been on ice since the bankruptcy filing last July. A survey revealed that a whopping 97% of Voyager’s account holders favored this plan, which is about as close to unanimous as you get without having them all scream in unison!

With a potential recovery of over 70% of their deposits in sight, customers are waiting to see whether the judiciary can cut through the red tape and bring the saga to a satisfying conclusion—as all gripping tales should have.