A judge in the United States has vowed to stop the securities regulators from interfering with bankruptcy proceedings related to crypto.
According to the judge whose name is Michael Wiles, the US Securities and Exchange Commission should not be allowed to penalize both executives and advisors who are working on proposals to launch a new token which will help the company to pay back its clients.
Early this year, the US SEC objected to the troubled Voyager Digital bankruptcy proceedings, these proceedings are focused on assisting the company to pay back the company’s customers who are affected by the downfall of the crypto lending firm.
The judge had earlier said that he needs specifics on SEC’s move regarding the bankruptcy proceedings and why it has decided to “stop everybody in their tracks” with little to no explanation of its concerns.
According to a new ruling, Judge Wiles said that SEC’s position would do nothing but damage, leaving “a sword hanging over the heads of anybody who’s going to do this transaction.”
Judge Wiles slammed the SEC’s regarding this objection, asking, “How can a bankruptcy case or any court proceeding function with that kind of suggestion?”
The proceedings came up from the US arm of Binance’s acquisition of Voyager in a deal worth more than $1 million, according to Wiles, in the future, the SEC can pursue Binance.US or Voyager’s attempts to actually issue a bankruptcy token, however, it will be wrong to penalize anyone for attempting to work on their proposals.
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