Key takeaways:
- The Voyager transaction is closer to happening now that the UCC and the U.S. government have agreed.
- It is said that the government may continue to pursue an appeal against the so-called exculpation requirements.
Insolvent cryptocurrency lender Voyager Digital Holdings has agreed with the U.S. government to advance a $1 billion plan that would let Voyager sell its assets to Binance’s U.S. division.
The agreement for Binance to purchase Voyager’s digital assets could go ahead as planned, according to a filing issued on April 19 in a New York District Court by Voyager, the Official Committee of Unsecured Creditors, and the U.S. government.
In the brief, it is said that the government may continue to pursue an appeal against the so-called exculpation requirements, which it describes as the prerequisites for protecting Voyager from particular legal consequences.
As per a series of tweets from the Voyager Official Committee of Unsecured Creditors on April 19, all parties accepted the decision under the condition that the appeals regarding the exculpation clause of the Plan shall proceed.
Previously, a federal judge temporarily blocked the agreement with Binance US in response to the American authorities’ request for an emergency stay.
In a court judgment dated March 27, Judge Jennifer Rearden allowed the U.S. government’s request to temporarily halt the proceedings, even though Voyager and the Committee both opposed the emergency stay application.
Since U.S. bankruptcy judge Michael Wiles gave the sale the go-ahead on March 7, U.S. officials have made repeated attempts to block it. Wiles pointed out that postponing the deal would affect the interests of Voyager’s former clients waiting to receive money.
On March 14, a week after that, the administration requested to postpone the bankruptcy plan for two weeks. Judge Wiles denied the application, stating that the allegations were “exaggerating and mischaracterizing” and that the bankruptcy plan did not immunize fraud, theft, or tax avoidance.
With the acquisition of insolvent crypto lender Voyager Digital, Binance US has finally made considerable progress after months of regulatory obstacles. This comes after the UCC and the U.S. government agreed, a significant turning point in the acquisition process.
According to a court document filed on February 28, 61,300 Voyager account holders, or 97%, approved the agreement with Binance. Since filing for Chapter 11 bankruptcy in July, the U.S. Voyager has been aggressively working to develop a strategy to distribute funds to creditors.
