The District Court for the Southern District of New York rejected the United States government’s arguments for suspending the Binance-Voyager deal. Any delays in the arrangement, according to Judge Michael Wiles, may affect the interests of Voyager’s former clients, who are waiting for their monies to be returned.
On March 15, the decision was made to refuse the government’s request. In it, Judge Michael Wiles confirms his earlier approval of Voyager Digital’s Chapter 11 bankruptcy plan, which proposes selling billions of dollars in assets to Binance.US in order to restore liquidity to repay consumers.
Thus, the Court denied the government’s appeal for a stay of the Confirmation order, i.e. an additional delay (in this case, for two weeks) of the bankruptcy plan realization. The appeal, filed on March 14, accused the bankruptcy plan of “immunizing fraud, theft or tax avoidance.” It has also demanded to remove the provision, preventing the U.S. authorities from legally pursuing anyone involved with the sale.
Judge Claims Binance-Voyager Accusations Are Exaggerated
Judge Wiles found that the claims were “exaggerated and mischaracterized” and that the Binance-Voyager deal should be continued. He did, however, affirm the present stay, which ends on March 20. On March 7, the court approved the Binance.US – Voyager purchase. Judge Wiles granted the trading platform permission to end the Binance.US auction and provide reimbursement tokens to affected Voyager customers. He dismissed the Securities and Exchange Commission’s claims that transferring funds from Voyager to Binance.US would violate US securities laws.
The decision was made after 97% of 61,300 Voyager account holders backed the reorganization proposal. According to the most recent calculations, the proposal will result in Voyager creditors receiving around 73% of the value.