• The U.S. Department of Justice (DOJ) has filed an appeal challenging a judge’s decision to approve Binance.US’s purchase of Voyager Digital’s assets.
• Last month, the SEC filed an objection to the purchase, arguing that Binance.US may be violating federal securities laws by operating an unregistered exchange in the U.S.
• Judge Michael Wiles approved the deal after a four-day hearing, citing creditors who were waiting for access to their investments as his reason for doing so.
U.S. Justice Dept Appeals New York Judge’s Decision
The U.S Department of Justice (DOJ) filed an appeal late Thursday evening challenging a bankruptcy court judge’s decision to allow Binance US’ billion-dollar plan to acquire the assets of bankrupt crypto lender Voyager Digital. The appeal comes just one day after Judge Michael Wiles gave Voyager Digital the go-ahead to sell its assets to Binance US after a four-day-long marathon hearing in Southern District Court in New York City
Regulators Oppose Proposed Deal
Regulators such as the U.S Securities and Exchange Commission (SEC) and various state regulators have been staunchly opposed to the proposed deal; last month, the SEC filed an objection to the purchase of Voyager, arguing that Binance US may be violating federal securities laws by operating an unregistered securities exchange in the United States.
Judge Approves Deal Despite Objections
Despite these objections, Judge Wiles seemed unmoved and approved the deal citing creditors who were waiting for access to their investments as his reason for doing so; under this proposed sale, Voyager customers would see approximately 73% recovery of funds invested with them prior to bankruptcy proceedings being initiated against them.
Billion Dollar Asset Transfer Plan Approved
The billion dollar asset transfer plan was assembled after crypto exchange FTX – Voyager’s previous top bidder – filed for bankruptcy protection in November 2020; it would see all Canadian customers receive 100% return on their investments while other customers would receive up to 73%.
Appeal Comes Just One Day After Approval
The DOJ’s appeal comes just one day after Judge Wiles approved this plan despite numerous objections from various stakeholders including regulators such as SEC and various state authorities who had raised concerns about potential violations of federal securities laws if this transaction went through without any changes being made or additional safeguards put into place beforehand