A federal judge temporarily halted the $1 billion sale of Voyager Digital to Binance.US after a US government request for an emergency stay.
The emergency suspension request was granted by Judge Jennifer Rearden of the US District Court in New York on March 27, meaning that the potential settlement between Voyager and Binance.US will now have to wait until at least a year. decision is done in the Justice Department Appeal against the bankruptcy plan.
The DOJ filed the emergency request for a stay on March 17. Voyager Digital and the Official Committee on Unsecured Creditors promptly contested this motion on March 20, and the DOJ responded again in a final "response" motion on March 21.
In his last order, Judge Rearden summed up:
"After consideration of the written submissions of all parties, as well as conferences and oral arguments conducted in this matter, the Government's emergency motion is hereby GRANTED."
The federal judge will soon release an opinion explaining the decision in more depth.
The cryptocurrency trading company filed for Chapter 11 bankruptcy on July 5 and has been proactive in coordinating a plan to redistribute funds ever since.
He Binance.US Acquisition of Voyager Granted by Judge Wiles on March 7. Part of that approval involved the bankruptcy token issuance to affected Voyager customers.
Related: US officials appeal protections for Voyager executives in sale of Binance.US
However, US regulators have made multiple attempts to stop the deal.
In addition to the Justice Department, the US Securities and Exchange Commission argued in a March 15 motion that Voyager 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 explained in a March 27 Twitter post that they "will continue to aggressively oppose the Government's efforts."
3/ The Committee is still analyzing the situation and awaiting the next written opinion of the district court. We will continue to aggressively oppose the Government's efforts and provide further updates as they become available.
โ Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) March 27, 2023
More than 97% of the 61,300 Voyager account holders favor the restructuring plan, according to a survey published in a February 28 court filing. The plan is expected pay 73% of what is owed to Voyager customers.
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