Voyager's $1B sale to Binance.US put on hold by US court

Voyager Digital’s $1 cardinal merchantability to Binance.US has been temporarily halted by a national justice aft a petition by the United States authorities for an exigency stay.

The petition for an exigency enactment was granted by Judge Jennifer Rearden of the U.S. District Court successful New York connected March 27, meaning the imaginable woody betwixt Voyager and Binance.US volition present request to hold until astatine slightest a decision is made connected the Department of Justice’s appeal against the bankruptcy plan.

District Court Judge Jennifer Rearden granted support of the U.S. DOJ’s exigency motion. Source: Court Listener

The DOJ filed the exigency exertion for a enactment connected March 17. This question was promptly challenged by Voyager Digital and the Official Committee of Unsecured Creditors connected March 20 and responded to again by the DOJ successful a last “reply” question connected March 21.

In its latest order, Judge Rearden summarized:

“Upon information of each parties’ written submissions, arsenic good arsenic the conferences and oral statement held successful this matter, the Government’s exigency question is hereby GRANTED.”

The national justice volition soon merchandise an sentiment explaining the determination successful much depth.

The cryptocurrency trading steadfast filed for Chapter 11 bankruptcy connected July 5 and has been proactive successful coordinating a program to redistribute funds ever since.

The Binance.US acquisition of Voyager was granted by Judge Wiles connected March 7. Part of that support progressive the issuance of bankruptcy tokens to impacted Voyager customers.

Related: US officials entreaty protections for Voyager execs successful Binance.US merchantability

However, U.S. regulators person made aggregate attempts person been made to halt the deal.

In summation to the DOJ, the U.S. Securities Exchange Commission argued successful a March 15 question that Voyager’s bankruptcy program would springiness emergence to fraud, theft oregon taxation avoidance. However, this assertion was aboriginal denied by Judge Michael Wiles.

The Voyager Official Committee of Unsecured Creditors explained successful a March 27 Twitter station that they “will proceed to aggressively reason the Government’s efforts.”

3/ The Committee is inactive analyzing the concern and awaiting the territory court's forthcoming written opinion. We volition proceed to aggressively reason the Government’s efforts and volition supply further updates arsenic they go available.

— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) March 27, 2023

Over 97% of 61,300 Voyager relationship holders favour the restructuring plan, according to a canvass released successful a Feb 28 tribunal filing. The program is expected to pay retired 73% of what Voyager customers are owed.

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