Business In News
- A U.S. bankruptcy judge has rejected the Justice Department’s appeal to halt Voyager Digital’s sale.
- The $1 billion sale to Binance U.S. was opposed by Manhattan prosecutors as well as the Office of the U.S. Trustee.
- The judge stated that Voyager’s customers should not have to wait for the result of the DoJ’s appeal.
- The U.S. Attorney previously argued that the proposed deal may allow Voyager’s executives to get away with a violation of securities laws.
A bankruptcy judge has denied the U.S. Department of Justice’s appeal to put a stay on bankrupt crypto lender Voyager Digital’s sale to Binance US. Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern District of New York, has rejected the appeal to delay the $1.3 billion sale, citing insufficient evidence submitted by the Justice Department to make its case.
Voyager-Binance deal will go ahead with any amendments
According to a recent court filing, Judge Wiles stated that customers of Voyager Digital should have to wait for the outcome of the appeal made by the Justice Department, adding that the appeal itself was unlikely to result in the DoJ’s favor. Responding to an earlier filing made by Manhattan prosecutors and the U.S. Trustee’s Office, the bankruptcy judge clarified that the DoJ had mischaracterized the scope of the legal protections that he had granted to the employees of Voyager.
Judge Wiles was referring to the filing made on 14 March, which claimed that “the court improperly exceeded its statutory authority” when it approved a provision in the proposed sale that essentially prevented the Justice Department from prosecuting the bankrupt crypto lender’s employees. U.S. Attorney Damian William stated in the filing that the provision effectively granted immunity to Voyager and its employees for potentially violating securities and tax laws.
The Government’s papers exaggerate and in some places mischaracterize what I have done and the authorities on which I have relied, and in other instances rely on hyperbole or on “straw man” arguments.”
Bankruptcy Judge Michael Wiles.
As per a recent report by Reuters, Binance U.S. has agreed to pay $20 million in cash to Voyager Digital and absorb the crypto assets deposited by the latter’s customers. These assets make up for the billion dollar valuation of the proposed deal.