U.S. DOJ takes on Binance over Voyager acquisitionThe U.S. Department of Justice (DOJ) has filed an appeal challenging a bankruptcy judge’s approval of Binance.US’s proposed acquisition of Voyager Digital assets.
The appeal comes just one day after Judge Michael Wiles approved the deal following a four-day-long marathon hearing. However, regulators, including the SEC and various state regulators, have been opposed to the proposed deal, with the SEC arguing that Binance.US may be violating federal securities laws by operating an unregistered securities exchange in the U.S.
The appeal was filed by the U.S. Trustee’s Office, an arm of the DOJ responsible for overseeing bankruptcies, and could put the deal in jeopardy.
The DOJ is seeking to overturn Judge Wiles’ decision, which would have allowed Voyager Digital to sell billions of dollars in assets to Binance.US in an effort to regain liquidity to pay back customers.
Binance.US’s acquisition of Voyager Digital assets has been a contentious issue, with regulators arguing that the deal could breach securities laws. If regulators are successful in blocking the sale, Voyager could be forced to liquidate itself, resulting in smaller returns for creditors.
Binance’s proposed acquisition plan
Under the proposed sale to Binance.US, Voyager’s customers would see an estimated 73% recovery. The plan, which was assembled after FTX, Voyager’s previous top bidder, filed for its bankruptcy in November, was supported by 97% of Voyager’s creditors.
However, regulators have been vocal about their concerns over the proposed sale, arguing that it could breach securities laws.
Judge Wiles appeared to be unmoved by the SEC’s concerns, stating that the Bankruptcy Code “doesn’t contemplate an endless period of time.”
He argued that creditors were waiting and needed access to their investment property. With Voyager’s customers waiting for their returns, the judge approved the sale to Binance.US.
What happens next?
The DOJ’s appeal could result in a delay or the reversal of Judge Wiles’ decision to approve the sale. If regulators are successful in blocking the sale, Voyager may be forced to liquidate itself, resulting in smaller returns for creditors.
Meanwhile, Voyager’s customers are eagerly awaiting their returns, and the case highlights the difficulties of balancing the interests of creditors, regulators, and customers in the crypto industry.
The DOJ’s appeal against the sale of Voyager Digital assets to Binance.US highlights the ongoing regulatory challenges faced by the crypto industry.
The proposed sale has been contentious, with regulators arguing that it could breach securities laws. With Voyager’s customers waiting for their returns, the outcome of the appeal could have significant implications for the crypto industry.
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