Voyager-Binance.US Pause Denied by Bankruptcy Judge

A New York court denied the government’s request to halt the $1 billion deal, saying delay would harm customers.

AccessTimeIconMar 16, 2023 at 7:58 a.m. UTC
Updated Mar 16, 2023 at 4:45 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A $1 billion bid by Binance.US to buy Voyager Digital’s assets should go ahead, a bankruptcy judge ruled in a Wednesday court filing, denying a bid by the U.S. government to put proceedings on hold pending appeal.

U.S. Attorney Damian Williams had argued the deal should be amended or struck down because it seeks to effectively absolve Voyager and its staff of violations of tax or securities law.

But Michael Wiles, a judge in the Southern District of New York, said the deal he previously approved does no such thing, and that waiting longer would harm Voyager clients who haven't been able to access their crypto the company filed for bankruptcy protection in July.

Government filings “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,” Wiles wrote.

Provisions in the deal “do not prohibit any regulatory action, including actions to stop the cryptocurrency sales and distributions that the plan contemplates,” Wiles added. “Delays themselves also are a massive issue for the Debtors’ customers.”

Under a separate deal agreed to by Voyager, the Binance.US purchase, previously set to come into effect March 15, has been extended to March 20.

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.

Jack Schickler

Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.


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.