Binance.US’s intent to save Voyager from falling any lower came with a lot of hurdles. The bankrupt cryptocurrency lender as well as Changpeng Zhao’s firm had to face a lot of heat from the U.S. government. However, a bankruptcy judge overseeing the case was trying to clear the path for the deal to come through.
A bankruptcy judge determined in a court filing on March 15, that Binance’s $1 billion offer to purchase Voyager’s assets should go forward, rejecting the U.S. government’s request to halt the process while an appeal is ongoing.
More recently, the Department of Justice [DOJ] called out the court for “improperly” transcending its authority. The DOJ asked for a two-week hold on the court’s approval of the sale, so they could submit an appeal. Prior to this, the U.S. Trustee put forth an appeal noting how the deal would effectively exonerate Voyager and its employees from violations of securities or tax laws.
Southern District of New York Judge, Michael Wiles dismissed the same and said that the agreement he previously authorized does not do such a thing. In addition to this, waiting any longer will be detrimental to Voyager clients who have been unable to access their funds since the bankruptcy was announced in July 2022.
Wiles further added,
“[Documents] 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.”
No more delays in the Voyager-Binance.US deal?
Voyager and Binance.US reached a separate agreement that moved the effective date of the acquisition from March 15 to March 20. As mentioned earlier, customers have been waiting for their funds for a while now. The latest filing shows that Judge Wiles might not leave room for any more delays. The Judge said,
“Delays themselves also are a massive issue for the Debtors’ customers.”