The sale of Voyager Digital to Binance.US, for USD 1,000 million, has been temporarily suspended by a federal judge after the emergency suspension request filed by the United States Government.
The emergency stay request was granted by Judge Jennifer Rearden of the US District Court in New York on March 27, meaning that the potential deal between Voyager and Binance.US will now have to wait until at least a decision is made on the Justice Department’s appeal against the bankruptcy plan.
The DOJ filed the emergency stay request on March 17. This motion was quickly challenged by Voyager Digital and the Official Committee of Unsecured Creditors on March 20 and answered again by the DOJ in a final “answer” motion on March 21.
In his last order, Judge Rearden summed up:
“After considering the written submissions of all parties, as well as conferences and oral arguments held in this matter, the Government’s emergency motion is GRANTED.”
The federal judge will soon publish an opinion in which she will explain the decision in greater depth.
The cryptocurrency trading company filed for Chapter 11 bankruptcy on July 5 and has since been coordinating a plan to redistribute the funds..
Binance.US’s acquisition of Voyager was approved by Judge Wiles on March 7. Part of that approval involved issuing bankruptcy tokens to affected Voyager customers.
However, US regulators have made multiple attempts to stop the deal.
In addition to the DOJ, the SEC argued in a March 15 motion that Voyager’s bankruptcy plan would result in fraud, theft or tax evasion. However, this claim was later denied by Judge Michael Wiles..
Voyager’s Official Committee on Unsecured Creditors said in a March 27 tweet that they “will continue to aggressively oppose the Government’s efforts.”.
3/ The Committee is still analyzing the situation and awaiting the district court’s forthcoming written opinion. We will continue to aggressively oppose the Government’s efforts and will provide further updates as they become available.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) March 27, 2023
3/ The Committee is still reviewing the situation and awaiting the next written opinion of the district court. We will continue to aggressively oppose the Government’s efforts and will provide further updates as they become available.
More than 97% of Voyager’s 61,300 account holders are in favor of the restructuring planaccording to a survey published in a court filing on February 28. The plan is expected to pay 73% of what is owed to Voyager customers.
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