The $1 billion sale of Voyager Digital to Binance has been halted. A federal judge has temporarily blocked US following a plea for an emergency stay from the US government. On March 27, Judge Jennifer Rearden of the U.S. District Court in New York granted the motion for an emergency stay, which means the prospective agreement between Voyager and Binance.
US must now wait until at least the Department of Justice’s appeal against the bankruptcy plan has been resolved.On March 17, the DOJ submitted the urgent request for a stay. On March 20, Voyager Digital and the Official Committee of Unsecured Creditors swiftly objected to this move. On March 21, the DOJ responded once more in a last “reply” motion.
Judge Rearden stated in its most recent ruling that the government’s emergency application was granted after taking into account the parties’ written filings, conferences, and oral arguments. The federal judge will soon publish an opinion in which he will elaborate on his decision.
Since filing for Chapter 11 bankruptcy on July 5, the bitcoin trading company has been proactive in organizing a strategy to transfer cash. Judge Wiles approved the purchase of Voyager by Binance.US on March 7. Tokens representing bankruptcy were given to afflicted Voyager clients as part of the approval.
Yet, US officials have made numerous attempts to block the sale. The U.S. Securities Exchange Commission asserted in a March 15 motion that Voyager’s bankruptcy plan will lead to fraud, embezzlement, or tax avoidance in addition to the DOJ. Judge Michael Wiles later refuted this assertion, though.
In a tweet from March 27, the Voyager Official Committee of Unsecured Creditors stated that they “will continue to aggressively oppose the Government’s efforts.”
According to a poll published in a court filing on February 28 and included 61,300 Voyager account holders, over 97% of them support the restructuring plan. The strategy is anticipated to cover 73% of the debt due to Voyager customers.
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