NY judge declined the U.S. government’s reasonings for halting the acquisition of Voyager Digital by Binance.US
The United States government’s arguments for stopping Binance. US’s acquisition of the insolvent brokerage firm Voyager Digital were rejected by the United States District Court for the Southern District of New York.
Judge Michael Wiles contends that any extension of the agreement will be detrimental to the interests of Voyager’s former clients, who are still waiting for their money to be returned.
On March 15, it was decided to reject the government’s proposal. In it, Wiles admits to having previously approved Voyager Digital’s Chapter 11 bankruptcy plan, which calls for selling billions of dollars’ worth of assets to Binance.US in order to recoup cash needed to pay creditors.
As a result, the court dismissed the government’s request for a stay of the confirmation order, adding a further two weeks to the fulfillment of the bankruptcy plan. The bankruptcy plan was accused of “immunizing fraud, theft, or tax evasion” in the appeal, which was submitted on March 14. It has also demanded that the clause be removed so that no one connected to the deal can be held accountable by American authorities.
Judge Wiles decided to move through with the bankruptcy plan because he believed that these claims were exaggerated and inaccurate. He did, however, confirm that the present stay is currently scheduled to terminate on March 20.
The court has given Binance its blessing. Voyager was made available to the Americans on March 7. Judge Wiles approved the closure of Binance by the trading platform. US sale and give affected Voyager customers reimbursement tokens. The U.S. Securities and Exchange Commission’s many justifications for transferring money from Voyager to Binance were all rejected by him. This would go against US securities laws.
The choice was made after 61,300 Voyager account holders, or 97% of them, voted in favor of the reorganization plan. According to the most recent projections, the strategy is anticipated to result in the creditors of Voyager receiving about 73% of the value of their money back.
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