US officials appeal protections for Voyager execs in Binance.US sale

US officials appeal protections for Voyager execs in Binance.US sale

Accounting Policy
October 25, 2022 by Admin
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How will the US government’s protection of Voyager execs affect the sale of Binance.US? US officials appeal protections for Voyager execs in Binance.US sale The US Department of Justice has asked a federal appeals court to reconsider a recent ruling that upheld a temporary restraining order on the sale of Binance.US’s stock owned by Voyager
765 us officials appeal protections for voyager execs in binance us sale

How will the US government’s protection of Voyager execs affect the sale of Binance.US?

US officials appeal protections for Voyager execs in Binance.US sale

The US Department of Justice has asked a federal appeals court to reconsider a recent ruling that upheld a temporary restraining order on the sale of Binance.US’s stock owned by Voyager executives. The restraining order was applied by a district court in response to a complaint filed by the Securities and Exchange Commission (SEC).

The SEC said that Voyager’s executives had “abused their positions of trust and confidence” when they made trades in Binance.US stock at prices substantially higher than the public market. The agency complained that the executives’ trades were manipulative and violated federal securities laws.

In a 2-1 decision, the Ninth Circuit Court of Appeals previously rejected the SEC’s request for a permanent injunction. The court found that the SEC had failed to show that the executives’ conduct was part of a “scheme which was deceptive or manipulative”.

However, the Justice Department has now asked the court to rehear the case, arguing that the SEC’s allegations were “make an offer that is too compelling to refuse” for the Voyager executives.

The Justice Department’s argument is that the executives should have been more aware of the rule that corporate insiders should use only the public market when trading the stock of their own companies. The department says that the executives knowingly disregarded this rule and, as a result, their actions merit a permanent injunction.

The department also noted that with a permanent injunction, the executives’ activities would be subject to close scrutiny by Voyager’s internal and external audit groups, as well as the SEC.

With a rehearing, the Justice Department hopes to get a more favorable ruling than the initial one by the Ninth Circuit Court. In its filing, the department stated that it “will continue to work closely with the SEC to protect investors and the integrity of the markets”.

Voyager’s stock is currently traded on NASDAQ, and the controversy surrounding its executives has caused the stock to drop nearly 20% since the initial ruling. The stock’s price could continue to fluctuate depending on how the appeals court rules.