Damian Williams, the Attorney for the Southern District of New York State, has urged for the halt of the transaction proposed by Binance.US to buy the assets of the Voyager Digital broker going through the bankruptcy process.

Williams believes the agreement between the companies would effectively exonerate Voyager and its employees after violating the Securities Act, a notion which is not allowed in the Bankruptcy Code.

In December 2022, Binance.US offered the highest bid for Voyager’s assets at $1.02 billion, but has faced opposition from the regulators, including the US Securities and Exchange Commission (SEC) and the New York State Department of Financial Services.

At the hearing, the SEC stated that the US division of Binance operates an unregistered securities exchange.