On March 27, Judge Jennifer Rearden of the U.S. District Court in New York granted the U.S. government’s request for an emergency stay on Voyager Digital’s proposed $1 billion sale to Binance.US. As a result, the potential transaction has been temporarily halted until a decision is made on the Department of Justice’s appeal against Voyager Digital’s bankruptcy plan.
On March 17, the Department of Justice filed an emergency application for a stay. Voyager Digital and the Official Committee of Unsecured Creditors quickly responded with a challenge to the motion on March 20, prompting the DOJ to submit a final “reply” motion two days later on March 21. After considering all parties’ submissions, Judge Rearden granted the Government’s motion in his latest ruling.
On March 7, a federal judge granted Binance.US’s acquisition of Voyager, which included the issuance of bankruptcy tokens to affected customers. However, U.S. regulators have since made multiple attempts to block the deal. Soon, a statement will be released by the judge that explains this decision in greater detail. Since filing for Chapter 11 bankruptcy on July 5, the cryptocurrency trading firm has been working diligently to coordinate a plan for the redistribution of funds.
The U.S. Department of Justice and the Securities Exchange Commission both filed motions against Voyager’s bankruptcy plan on March 15, arguing that it could lead to potential fraud, theft, or tax avoidance. However, Judge Michael Wiles denied these claims. The Voyager Official Committee of Unsecured Creditors also made a statement on March 27, stating that they would “continue to vigorously oppose the Government’s efforts.”
According to a poll released in a Feb 28 court filing, over 97% of Voyager’s 61,300 account holders favor the proposed restructuring plan that is expected to pay out 73% of what they are owed.
