US Judge Shuts Down SEC, Says Agency Will Not Be Allowed to Interfere With Crypto Bankruptcy Proceedings

A judge in the Southern District of New York says he will not allow the SEC to interfere with a bankruptcy case by claiming a new crypto asset is a security.

Highlights

• Judge Michael Wiles says he will not allow the SEC to interfere with a bankruptcy case by claiming a new crypto asset is a security.
• The SEC issued an objection to bankruptcy proceedings for the embattled crypto lender Voyager early this year.
• Judge Wiles initially said he needs specifics on why the SEC objects and why it has decided to “stop everybody in their tracks” with little to no explanation of its concerns.
• The bankruptcy proceedings stem from Binance.US’s acquisition of more than $1 billion worth of assets from Voyager, a deal that was signed after FTX’s plans to acquire the assets vaporized.
• The judge blasted the SEC’s interference, asking, “How can a bankruptcy… function with that kind of suggestion?”

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