Court refuses to suspend the deal to sell Voyager’s assets to Binance.US

Judge Michael Wiles explained that the broker’s restructuring does not imply its exemption from liability for past violations

16.03.2023 - 11:00

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A $1 billion bid by Binance.US to buy up Voyager’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 that 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 since bankruptcy was declared in July 2022.

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.

This material is taken from the website https://www.coindesk.com.

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