Voyager Digital’s $1 billion sale to Binance.US has been briefly halted by a federal decide after a request by the United States authorities for an emergency keep.
The request for an emergency keep was granted by Judge Jennifer Rearden of the U.S. District Court in New York on March 27, which means the potential deal between Voyager and Binance.US will now want to wait till not less than a choice is made on the Department of Justice’s attraction in opposition to the chapter plan.
The DOJ filed the emergency software for a keep on March 17. This movement was promptly challenged by Voyager Digital and the Official Committee of Unsecured Creditors on March 20 and responded to once more by the DOJ in a ultimate “reply” movement on March 21.
In its newest order, Judge Rearden summarized:
“Upon consideration of all parties’ written submissions, as well as the conferences and oral argument held in this matter, the Government’s emergency motion is hereby GRANTED.”
The federal decide will quickly launch an opinion explaining the choice in additional depth.
The cryptocurrency buying and selling agency filed for Chapter 11 chapter on July 5 and has been proactive in coordinating a plan to redistribute funds ever since.
The Binance.US acquisition of Voyager was granted by Judge Wiles on March 7. Part of that approval concerned the issuance of chapter tokens to impacted Voyager prospects.
Related: US officers attraction protections for Voyager execs in Binance.US sale
However, U.S. regulators have made a number of makes an attempt have been made to halt the deal.
In addition to the DOJ, the U.S. Securities Exchange Commission argued in a March 15 movement that Voyager’s chapter plan would give rise to fraud, theft or tax avoidance. However, this declare was later denied by Judge Michael Wiles.
The Voyager Official Committee of Unsecured Creditors defined in a March 27 Twitter submit that they “will continue to aggressively oppose the Government’s efforts.”
3/ The Committee continues to be analyzing the state of affairs and awaiting the district court’s forthcoming written opinion. We will proceed to aggressively oppose the Government’s efforts and can present additional updates as they change into obtainable.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) March 27, 2023
Over 97% of 61,300 Voyager account holders favor the restructuring plan, in accordance to a ballot launched in a Feb 28 court submitting. The plan is anticipated to pay out 73% of what Voyager prospects are owed.
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