Judge Jennifer Rearden, a new Federal Judge for the US District Court in New York has temporarily halted the proposed sale of Voyager Digital to Binance.US. According to the judgment passed, the proposed $1 billion sale will now only be concluded once a decision has been made concerning the final details of the bankruptcy proceedings.
The decision to suspend the completion of the acquisition was granted to give the government ample time to prepare for the appeal of the judgment passed by Judge Michael Wiles back on March 7. In her own words featuring the order passed, Judge Rearden declared saying:
“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.”
According to the Judge, a detailed opinion on why she took the position will be published at a later date and industry participants are already expectant of the insights that will be gleaned from the message.
Voyager Digital filed for Chapter 11 Bankruptcy back in July last year and the firm has been very proactive in the search of solutions that will help it refund both its secured and unsecured creditors. Among the solutions explored was a sale to FTX Derivatives Exchange, a move that tanked when the trading platform also hit the rocks in the fourth quarter of last year.
The restructuring plans to sell its assets was revealed in a court filing in February with about 97% of 61,300 creditors backing the deal. The next best alternative found in Binance.US has always been opposed by the government. If allowed to pass, the Voyager Digital customers will be receiving back as much as 73% of their assets locked on the platform.
Opposition to the Binance.US and Voyager Digital Deal
Since the time of the auction and the bidding process, US regulators have expressed a lack of confidence in the sale of the company to Binance. The position of the Department of Justice was that selling Voyager Digital to Binance.US will foster fraud, theft, or evasion of taxes.
While Judge Wiles disagreed with the assessment of the regulators when he passed his first ruling, the latest position of Judge Rearden will grant ample time to prove its case and possibly get the decision upturned.
While it is assumed unconnected, the recent crackdown and lawsuit slammed on Binance by the United States Commodity Futures Trading Commission (CFTC) for violating American derivatives law might also complicate the entire sale proceedings. There is notably a high level of uncertainty surrounding Binance as a business and a crypto trading outfit and Voyager Digital might want to desist from anything that will further complicate its restructuring plans moving forward.
The Voyager Committee of Unsecured Creditors says it will continue to oppose the government in its attempt to frustrate the deal.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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