The U.S. District Court for the Southern District of New York rejected the United States government’s rationale for stopping Binance.US’ acquisition of bankrupt brokerage firm Voyager. According to Judge Michael Wiles, any delay in the transaction will harm the interests of former Voyager clients who are waiting for their funds to be returned.
The decision to reject the government’s proposal he came 15th of March. In it, Judge Michael Wiles reaffirms his previous approval of Voyager Digital’s Chapter 11 bankruptcy plan, which proposes to sell billions of dollars in assets to Binance.US in an effort to regain liquidity and repay customers.
So the court denied the government appeal o postponement Confirmation of the order, i.e. additional postponement (in this case by two weeks) of the implementation of the bankruptcy plan. The appeal, filed March 14, accused the bankruptcy plan of “immunizing fraud, theft or tax evasion.” He also wants to remove this provision, which is preventing the US authorities legally pursue anyone involved in the sale.
Judge Wiles found the allegations “exaggerated and mischaracterized” and decided to proceed with the bankruptcy plan. However, he confirmed the length of the current stay, which ends on March 20.
Court Approval of Binance.US Acquisition – Voyager was awarded on March 7. Judge Wiles allowed the trading platform to close the Binance.US sale and issue redemption tokens to affected Voyager customers. He rejected a series of arguments by the Securities and Exchange Commission that reallocating funds from Voyager to Binance.US would violate US securities laws.
Related: Binance.US, Alameda, Voyager Digital and the SEC — the ongoing legal saga
The decision came after it was found that 97% of Voyager’s 61,300 account holders support the restructuring plan. Based on the latest estimates, the plan is expected to go through Voyager’s creditors recovered approximately 73% the value of their funds.