Voyager Digital’s $1 billion sale to Binance.US has been temporarily suspended by a federal judge after a sudden lawsuit filed by the United States government.
An emergency stay request was granted by U.S. District Judge Jennifer Rearden in New York on March 27, indicating that a potential deal between Voyager and Binance.US will now have to wait until they complete at least one decision in the Justice Department’s appeal against the bankruptcy plan.
The DOJ filed an emergency motion on March 17. This motion was quickly challenged by Voyager Digital and the Official Committee on Pursuant Creditors on March 20th and was again responded to by the DOJ in a final “respond” motion on March 21st.
In the last order, Judge Rearde spoke;
“Having considered the written submissions of all parties, as well as the interviews and oral arguments held in this matter, the Government’s immediate action is granted.”
A federal judge will soon issue a ruling in which he will explain the decision in more detail.
The crypto-currency trading company filed for Chapter 11 bankruptcy on July 5 and plans to recoup the funds ever after.
Binance.US Acquisition of Voyager was approved by Judge Wiles on March 7th. Part of that approval involved discrediting outgoing Voyager standards for customers.
However, US regulators have made several attempts to block the deal.
In addition to the DOJ, the SEC in March 15 argued that Voyager’s bankruptcy plan was based on fraud, theft or tax evasion. But this request was later denied by Judge Michael Wiles.
Voyager’s Official Committee on Pursued Creditors said in a March 27 tweet that it will “continue to aggressively oppose the Government’s efforts.”
3/ The committee is still reviewing the situation and waiting for the following 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 restoration plan, according to an extension in a court filing issued on February 28. The plan is expected to pay 73% of what Voyager owes to customers.
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