U.S. Bankruptcy Judge Michael Wiles appeared heavily skeptical about an attempt by the Securities and Exchange Commission (SEC) to stop a purchase by Binance US of assets of defunct crypto lender Voyager at a Thursday court hearing.

The securities regulator said the $1.02 billion deal should be blocked because Voyager’s token could constitute an unregistered security.

“You come here and tell me …that I should stop everybody in their tracks because you might have an issue,” Wiles said, addressing counsel for the SEC. “It's kind of a weird objection.”

Wiles, who is with the New York Southern District Bankruptcy Court, said he was "absolutely shocked" at the SEC's objection, saying it was asking Voyager to prove a negative with little guidance from the regulator.