Recently, Judge Jennifer Redden of the US District Court in New York announced her approval of the US government’s request for an emergency stay in the proposed $1 billion sale of Voyager Digital to Binance.US.
As a result, the potential deal has been paused until a decision is made on the Department of Justice’s appeal against Voyage Digital’s bankruptcy plan.
On March 17, the Department of Justice submitted an emergency request for consideration.
Voyager and the official Committee on Unsecured Creditors quickly responded with an appeal to the motion on March 20, prompting the Justice Department to file a final response motion two days later on March 21.
On March 7, a federal judge granted approval for Binance.US’s acquisition of Voyager, which included the issuance of bankruptcy codes to affected clients.
Then US regulators made multiple attempts to block the deal.
Soon, the judge will issue a statement explaining the recent suspension decision in more detail.
Since filing for Chapter 11 bankruptcy on July 5, the cryptocurrency exchange has been working hard to coordinate a plan to redistribute the funds.
Both the US Department of Justice and the Securities Commission filed motions against Voyager’s bankruptcy plan on March 15, arguing that it could lead to potential fraud, theft or tax evasion.
But Judge Michael Wiles denied the allegations.
The official Voyager Committee for Unsecured Creditors also issued a statement on March 27, saying they would continue to vigorously oppose the government’s efforts.
According to a poll released Feb. 28, more than 97% of Voyager’s 61,300 account holders favor a proposed restructuring plan (which is intended for the acquisition) that is expected to pay 73% of their dues.