Coindesk Logo

U.S. Justice Dept. Appeals New York Judge’s Decision to Approve Voyager’s Sale to Binance.US

U.S. Justice Dept. Appeals New York Judge’s Decision to Approve Voyager’s Sale to Binance.US

U.S. Justice Dept. Appeals New York Judge’s Decision to Approve Voyager’s Sale to Binance.US

The appeal comes just one day after Judge Michael Wiles gave Voyager Digital the go-ahead to sell its assets to Binance.US.

The appeal comes just one day after Judge Michael Wiles gave Voyager Digital the go-ahead to sell its assets to Binance.US.

The appeal comes just one day after Judge Michael Wiles gave Voyager Digital the go-ahead to sell its assets to Binance.US.

AccessTimeIconMar 10, 2023, 5:41 AM
Updated Mar 10, 2023, 7:21 PM
(Shutterstock)
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

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, which was filed by the U.S. Trustee’s Office – an arm of the DOJ responsible for overseeing bankruptcies – comes just one day after Judge Michael Wiles of the Southern District Court in New York approved the deal after a contentious, four-day-long marathon hearing.

Regulators, including 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 U.S.

However, Judge Wiles appeared to be unmoved by the SEC’s concerns, telling the lawyers present at the hearing that the federal Bankruptcy Code “doesn’t contemplate an endless period of time.”

“Things have to be done. We have creditors who are waiting and who in the midst of all of this uncertainty have no access to property in which they’ve invested, in some cases, their life savings, so we have to take some kind of action,” Wiles said. “We have to do something.”

Under the proposed sale to Binance.US, Voyager’s customers would see an estimated 73% recovery. The plan, which was assembled after the crypto exchange FTX – Voyager’s previous top bidder – filed for bankruptcy protection in November, was supported by 97% of Voyager’s creditors.

If Voyager decides not to go through with the current plan to sell itself to Binance.US – or if regulators are successful in blocking the sale – another option is for the bankrupt lender to liquidate itself, which would likely result in much smaller returns for creditors.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.