SEC Lawyer: Binance.US Runs Unregistered Exchange, Tokens to Be Regulated

• The SEC lawyer William Uptergrove stated that Binance.US operates an unregistered securities exchange and Voyager’s planned recovery token should be regulated as a security.
• U.S. Bankruptcy Judge Michael Wiles criticized the SEC for not providing a way to respond to its concerns, and Binance CEO Changpeng Zhao suggested pulling out of the deal.
• Voyager customers voted overwhelmingly in favor of the plan on March 1, but the sale of Voyager’s assets must be allowed by the SEC for it to go through.

SEC Lawyer Declares Unregistered Exchange

The U.S Securities and Exchange Commission (SEC) lawyer, William Uptergrove, has declared that Binance.US runs an unregistered securities exchange and also stated that Voyager tokens should be regulated as securities according to a Bloomberg report on March 3rd. This puts both parties involved in Voyager Digital’s bankruptcy case under SEC regulation jurisdiction.

Judge Criticizes SEC Objections

U.S Bankruptcy Judge Michael Wiles expressed his dissatisfaction with the SEC’s objections of not providing any possible solutions during their proceedings on March 2nd. Following this statement, Uptergrove refused to take any stance regarding if the sale of Voyagers asset would violate securities laws or not, leading judge Michael Wiles demanding a specific response from him.

Binance CEO Suggests Pulling Out Of Deal

Changpeng Zhao, CEO of Binance US suggested pulling out from this deal because of its complexity on March 3rd via Twitter but still showed support for it if it is ultimately permitted by all parties involved including companies, creditors and judge himself if approved by the SEC itself as well regarding sale of Voyagers asset which must be allowed by them even after approval from every other party involved in this process .

Overwhelming Vote In Favor Of Plan

On March 1st ,Voyager Customers voted overwhelmingly in favor of this plan despite all its complications caused due to regulations objection put forward by U S Securities And Exchange Commission staff ,which has made it difficult for them to proceed further taking into account all these complications .


To conclude ,the purchase deal between Binance US & Voyagers digital is still hanging at balance which will depend upon either acceptance or rejection from U S Securities And Exchange Commission staff .However ,majority of customers have already given their vote in favour .