Voyager Digital’s $1 billion sale to Binance. A federal court has granted the request made by the government of the United States of America for an emergency stay and has therefore temporarily suspended US.
On March 27, 2019, Judge Jennifer Rearden of the United States District Court for the Southern District of New York approved the motion for an emergency stay. This means that the proposed agreement between Voyager and Binance may move forward.
The United States of America will have to sit tight until at least a judgment is reached on the appeal lodged by the Department of Justice against the bankruptcy plan.
On March 17, the Department of Justice submitted an urgent request for a stay of proceedings. On March 20, Voyager Digital and the Official Committee of Unsecured Creditors briskly opposed this motion, and on March 21, the Department of Justice offered a concluding “reply” motion in response to this motion’s earlier opposition.
In his most recent order, Judge Rearden summed up as follows:
The federal judge will shortly issue an opinion providing a more in-depth explanation of the judgment that was made.
On July 5, the bitcoin trading company submitted a petition for protection under Chapter 11 of the United States Bankruptcy Code. Since then, the company has been actively working to coordinate a strategy to disperse cash.
The acquisition of Voyager by Binance.US was given the go-ahead by Judge Wiles on March 7. As a component of such permission, the distribution of bankruptcy tokens to affected Voyager clients was a requirement.
In a related development, US authorities have filed a petition to have safeguards for Voyager executives in Binance.
On the other hand, authorities in the United States have tried on many occasions to prevent the transaction from going through.
In a motion filed on March 15, in addition to the Department of Justice, the United States Securities and Exchange Commission contended that the bankruptcy plan proposed by Voyager would result in either fraud, theft, or the evasion of taxes. Yet, this suit ended up being dismissed by Judge Michael Wiles later on.
In a tweet published on March 27, the Voyager Official Committee of Unsecured Creditors stated that they “will continue to fiercely resist the Government’s actions.”
According to a survey that was made public in a court filing on February 28, more than 97% of the 61,300 people who have Voyager accounts support the reorganization plan. According to projections, the plan will pay out 73% of what is due to Voyager consumers.