SEC v. Voyager Digital

The SEC objected to Voyager Digital’s bankruptcy restructuring plan to sell its assets to Binance.US for $1.3 billion, citing potential violations of U.S. securities laws, including Voyager’s crypto lending business involving unregistered securities and concerns about Binance.US operating as an unregistered securities exchange. U.S. Bankruptcy Judge Michael Wiles criticized the SEC for vague objections without specific guidance, emphasizing the urgency of resolving Voyager’s bankruptcy to allow customers to recover 73% of their deposits. The deal, approved by Judge Wiles on March 7, 2023, required final approval from the SEC and CFIUS but was later blocked by District Judge Jennifer Rearden in April 2023 due to a U.S. government appeal. The SEC’s investigation into Voyager’s lending business remains ongoing.