NY Judge Has Ruled That The Binance-Voyager Deal Can Proceed Without Any Assets Being Held
Judge Michael Wiles has stated that any delays in the deal will negatively impact the interests of Voyager’s previous clients who are currently awaiting the return of their funds.
Because Bitcoin
March 17, 2023
On March 15, the United States District Court for the Southern District of New York rejected the U.S. government’s argument to halt the acquisition of bankrupt brokerage firm Voyager Digital by Binance US. The court’s decision, made by Judge Michael Wiles, was based on the potential harm to Voyager’s former clients if the deal was delayed. Judge Wiles reaffirmed his previous approval of Voyager Digital’s Chapter 11 bankruptcy plan, which involves selling billions of dollars in assets to Binance.US to regain liquidity and repay customers.
The court rejected the U.S. government’s request for a stay of the confirmation order, which would have caused a further two-week delay in the implementation of the bankruptcy plan. The government had filed an appeal on March 14, claiming that the plan could shield individuals from legal consequences related to fraud, theft, or tax evasion, and demanded the removal of the provision preventing the authorities from pursuing those involved in the sale. However, Judge Wiles deemed these allegations as exaggerated and mischaracterized and upheld the bankruptcy plan. He did, however, confirm the current stay’s duration, which is set to end on March 20.
On March 7, the court approved Binance. US’s acquisition of Voyager and authorized the trading platform to finalize the sale and issue repayment tokens to affected Voyager customers. Despite the U.S. Securities and Exchange Commission’s objections that the fund redistribution would violate securities laws, Judge Wiles dismissed their arguments. The restructuring plan received support from 97% of 61,300 Voyager account holders. Based on the most recent projections, the plan is expected to result in Voyager creditors recovering roughly 73% of their funds’ value.
Voyager Is Offering Crypto Assets For Sale On Coinbase, New Data Shows
On-chain analyst Lookonchain alleges that Voyager has been regularly transferring cryptocurrency assets to Coinbase since February 14th. The investigation indicates that Voyager has utilized various cryptocurrency tokens, such as Ether (ETH), Shiba Inu, and Chainlink, to transfer millions of dollars.
The use of 23 tokens, amounting to over $100 million by Voyager, was uncovered by Lookonchain. The list below displays the tokens along with their respective value in U.S. dollars.
