In a March 15th court filing, the bankruptcy judge ruled that Binance.US’ $1 billion bid to purchase Voyager’s assets should continue.
Around Court submissionthe ruling judge denied the government’s petition for a stay of implementation of the bankruptcy plan (known as a stay of confirmation order) for another two weeks.
On March 14, the government filed an appeal, arguing that the bankruptcy plan protects individuals involved in fraud, theft, or tax evasion, calling for the removal of provisions that prevent U.S. authorities from taking legal action against individuals.
In a separate transaction, Voyager has agreed to extend the previously scheduled March 15th effective date for the purchase of Binance.US to March 20th.
In July 2022, Voyager filed a petition for bankruptcy protection after Three Arrows Capital (3AC), a cryptocurrency hedge fund, failed to meet its significant loan obligations to Voyager.
At the time of filing for bankruptcy, the exchange had assets worth approximately $1.3 billion, with over $650 million in outstanding dues from 3AC, and a net value of $5.8 billion at the end of 2021. It has decreased significantly.
according to recently Judge Michael Wiles of the Southern District of New York said the previously approved transaction did not relieve Voyager and its employees from violating tax or securities laws, according to court documents.
Wiles also warned that any delays in the process would hurt Voyager customers who have lost access to cryptocurrencies since the company declared bankruptcy in July 2022.
Wiles wrote in his book that the government “exaggerated and misled what I did and the authorities on which I relied, and in other instances relied on exaggeration and ‘strowman’ arguments. The terms of the agreement “do not prohibit any regulatory action, including actions to halt the sale and circulation of cryptocurrencies contemplated by the plan,” Wiles added. “Delays themselves are also a big problem for debtor customers.”
Wiles’ ruling confirms that the terms of the deal do not preclude regulatory action, including actions to halt the sale and distribution of cryptocurrencies outlined in the plan, as otherwise reported in the media. I mean