SEC attorneys said both parties involved in the Voyager Digital bankruptcy case are subject to securities regulation, Bloomberg reported. March 3rd.

Binance.US, Voyager Face Securities Regulation

U.S. Securities and Exchange Commission attorney William Uptergrove said the SEC staff believes Binance.US operates an unregistered stock exchange.

Binance.US is now looking to buy Voyager Digital’s assets, which the SEC opposed in January. Binance.US faces further SEC investigations, according to previous court proceedings cited by Bloomberg.

Uptergrove also said Voyager’s planned recovery tokens should be regulated as a security measure. This will place the assets under the jurisdiction of the SEC.

Uptergrove’s statements have not been made public and do not represent the views of the SEC. However, his remarks carry weight because they represent the views of his SEC staff. So it doesn’t just represent his personal views.

Voyager bankruptcy proceedings continue

Previously, March 2, the judge in charge of the case criticized the SEC’s objection to the transaction.U.S. Bankruptcy Judge Michael Wiles Says Regulators Have ‘Stopped'[ped] Everyone is on their own track without providing a way to address that concern.”

At the time, Uptergrove declined to take a position on whether the sale of Voyager’s assets violated securities laws.

In response to the increasingly complex situation, Binance CEO Changpeng Zhao has raised the possibility of abandoning the deal on March 3. wrote on twitter: “Shall we withdraw?” Nonetheless, he expressed his support for the deal if it was finally allowed.

The purchase of Voyager assets by Binance.US must be authorized by the SEC even if the transaction is approved by all other parties, including the company, creditors and judges.

Voyager customers overwhelmingly voted in favor of the plan on March 1st.

By Jules

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