Binance-Voyager deal to go without holdings, NY judge rules

Binance-Voyager deal to go without holdings, NY judge rules


The United States District Court for the Southern District of New York rejected the US government’s arguments to stop the acquisition of bankrupt brokerage firm Voyager Digital by Binance.US. According to Judge Michael Wiles, any extension of the deal will harm the interests of former Voyager clients, who hope to return their funds.

The decision to deny the government’s motion came March 15th. In it, Wiles again alleges his pre-approval of Voyager Digital’s Chapter 11 bankruptcy plan, which suggests selling billions of dollars in assets to Binance.US in an effort to regain liquidity to pay clients.

Therefore, the court denied the government’s decision appeal for a stay of confirmation order — an additional two-week delay in completing the bankruptcy plan. The appeal, presented on March 14, accused the bankruptcy plan of “immunizing fraud, theft or tax avoidance.” It has also called for the removal of the provision, which prevents US authorities legally prosecute anyone involved in the sale.

Judge Wiles called these accusations “exaggerated and misrepresented” and ruled to continue with the bankruptcy plan. However, he confirmed the duration of the current stay, which ends on March 20.

Court approval for Binance.US’ acquisition of Voyager was granted on March 7. Judge Wiles allowed the trading platform to close the sale of Binance.US and issue payment tokens to affected Voyager clients. He rejected a number of arguments from the US Securities and Exchange Commission that redistributing funds from Voyager to Binance.US would violate US securities laws.

Related: Binance.US, Alameda, Voyager Digital and the SEC: the ongoing court saga

The decision came after 97% of the 61,300 Voyager account holders favored the restructuring plan. Based on the latest estimates, the plan is expected to result in Voyager’s creditors recover about 73% the value of your funds.