Voyager Digital’s $1 billion sale to Binance US has been put on hold by a judge in a federal court after a request was made by the United States government for an emergency stay.
This request was granted by Federal Judge Jennifer Rearen of the District Court in New York on 27th March, which implies that the potential deal between Binance US and Digital will now be postponed until a quick decision is made by the Department of Justice- which could also be the result of their appeal against the bankruptcy plan. The application for the emergency stay was filed by the DOJ on 17th March, and the motion was immediately challenged by Digital and the Official Committee of Unsecured Creditors on 20th March and was then responded to again by the Department of Justice in a final ‘reply’ motion on 21st March.
Binance’s Voyager Acquisition Has Been Suspended Temporarily
It is expected that the federal judge will be releasing an opinion that will talk about this decision against Binance US. The cryptocurrency trading firm had also filed for a Chapter 11 bankruptcy on 5th July and has already been quite proactive in coordinating a plan that would help in redistributing the funds. The acquisition of Voyager by Binance US was previously granted by Judge Wiles on 7th March. A large part of that approval also included the issuance of bankruptcy tokens to the customers of Digital that had been impacted. However, the regulators in the country have already made several attempts to stop this deal from taking place.
Along with the Department of Justice, the United States Securities Exchange Commission had also argued in a motion made on 15th March that the bankruptcy plan of Voyager would lead to fraud, tax avoidance, or theft. However, Judge Michael Wiles denied this claim later.