DOJ Appeals Judge’s Decision to Approve Binance.US’s Acquisition of Voyager Digital
In a dramatic turn of events, the U.S. Department of Justice (DOJ) has filed an appeal challenging a New York bankruptcy judge’s decision to approve Binance.US’s billion-dollar plan to acquire the assets of bankrupt crypto lender Voyager Digital.
The appeal, filed by the U.S. Trustee’s Office, comes just one day after Judge Michael Wiles approved the deal following a four-day-long hearing.
This news comes after regulators, including the U.S. Securities and Exchange Commission (SEC) and various state regulators, expressed strong opposition to the proposed deal.
Last month, the SEC filed an objection to the purchase of Voyager, arguing that Binance.US may be violating federal securities laws by operating an unregistered securities exchange in the U.S.
Despite the objections, Judge Wiles approved the deal, stating that the Bankruptcy Code “doesn’t contemplate an endless period of time” and that “we have to take some kind of action.” Under the proposed sale, Voyager’s customers would see an estimated 73% recovery. The plan was supported by 97% of Voyager’s creditors.
If Voyager decides not to proceed with the sale to Binance.US or if regulators successfully block the sale, the bankrupt lender may have to liquidate itself, resulting in much smaller returns for creditors.
The appeal by the DOJ adds yet another layer of uncertainty to the already complicated situation. It remains to be seen how this will play out and whether the proposed sale will ultimately be allowed to proceed. With the cryptocurrency market constantly evolving, it is clear that regulatory challenges are likely to become more common in the future.
Read more:
- Voyager Sells $56 Million In Assets Following Binance.US Acquisition Approval
- US Judge Approves Binance’s Acquisition Of Voyager
- Voyager Digital Sells Over $350 Million In On-Chain Assets In Past Six Weeks