Federal Judge Halts $1 Billion Sale
In a twist fit for a courtroom drama, Voyager Digital’s much-anticipated $1 billion sale to Binance.US has been put on ice. On March 27, Judge Jennifer Rearden of the U.S. District Court in New York granted an emergency stay following a request from the U.S. government. So, while Binance was ready to make waves in the crypto sea, the federal judge said, “Not so fast!”
The Emergency Motion Drama
The saga kicked off when the Department of Justice (DOJ) filed a last-minute plea for an emergency motion on March 17. The motion faced a swift counter from Voyager Digital and its crew of unsecured creditors shortly after. You could say this situation was about as welcome as a flat tire on a road trip!
Judge Rearden’s Decision
Judge Rearden wasn’t just picking sides; she declared the government’s request a go, stating, “Upon consideration of all parties’ written submissions…” This means Voyager and Binance.US are now stuck in limbo, awaiting a decision on the DOJ’s appeal regarding Voyager’s bankruptcy plan. We’re all waiting for the judge’s deeper dive into the legal reasoning behind this decision — popcorn anyone?
Voyager’s Bankruptcy Journey
Voyager Digital, which threw in its towel by filing for Chapter 11 bankruptcy on July 5, has been hustling to regain its footing. The bankruptcy came with plans to redistribute funds among anxious customers who want their money back. And let’s not forget, Judge Wiles had previously given the green light for Binance.US’s acquisition on March 7 — talk about a rollercoaster ride!
Regulatory Reactions
The ride hasn’t been a smooth one. Other regulatory bodies, like the U.S. Securities and Exchange Commission, voiced concerns about potential fraud and tax evasion linked to Voyager’s restructuring efforts. But, much to their dismay, Judge Wiles quashed those fears. Meanwhile, the Voyager Official Committee of Unsecured Creditors has taken to social media, vowing to fight back against the government’s legal attempts, promising us all that they’re in the fight for the long haul.
Support from Voyager Users
In the midst of this legal fray, a glimmer of hope shines from Voyager’s customer base. According to a February 28 court filing, over 97% of 61,300 account holders backed the restructuring plan, which features a glimmer of recovery with expected payouts of 73%. Who knew that in these digital tumultuous times, a little optimism from users could give a boost to the beleaguered company?
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