The bankrupt cryptocurrency lender Voyager Digital Holdings has sealed an agreement with the United States federal government that advances a $1 billion plan that would allow Voyager to sell its assets to the American division of Binance.
On April 19, Voyager, the Official Committee of Unsecured Creditors and the US government agreed that the deal for Binance to acquire Voyager’s digital assets could go ahead as planned.
The presentation states that the government can continue to work on an appeal of the exculpation provisions, which it says are conditions that allow Voyager to be shielded from certain legal liabilities.
Voyager’s Official Committee on Unsecured Creditors stated in a series of tweets on April 19 that all parties agreed to the ruling as long as “appeals will continue with respect to the exculpation provision of the Plan”.
2/ The resolution is embodied in a joint stipulation providing that the appeals will continue with respect to the Plan’s exculpation provision. The Government has agreed that the Plan may move forward without such provision and will not otherwise be subject to the stay.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 19, 2023
2/ The resolution is embodied in a joint stipulation that establishes that the resources will continue with respect to the exculpation provision of the Plan. The Government has agreed that the Plan may proceed without such provision and will not be subject to suspension.
Previously, the deal with Binance.US was temporarily halted by a federal judge after a US government request for an emergency stay.
Despite both Voyager and the Committee contesting the emergency stay request, Judge Jennifer Rearden granted the US government’s request to temporarily suspend the proceedings in a March 27 court order..
US regulators have repeatedly tried to halt the operation since bankruptcy judge Michael Wiles approved its continuation on March 7.noting that delaying it would harm the interests of former Voyager customers hoping to receive funding.
A week later, the government requested on March 14 to delay the bankruptcy plan for two weeks. He accused the bankruptcy plan of “immunizing fraud, theft or tax evasion”, however the motion was denied by Judge Wileswho said the allegations were “exaggerated and mischaracterized”.
A February 28 court filing revealed that 97% of Voyager’s 61,300 account holders were in favor of the deal with Binance.US.
Voyager has been actively taking steps to coordinate a plan for the redistribution of funds to creditors since it filed for Chapter 11 bankruptcy in July..
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