- The US Department of Justice (DOJ) does not favour the $1Bn selling contract between Voyager and Binance US.
- The agency filed an appeal in response to the bankruptcy court’s ruling.
The United States government is attempting to thwart Binance.US’ intention to spend $1 billion buying Voyager’s troubled assets, despite the bankruptcy court in New York having approved the deal.
The US Department of Justice (DoJ) has appealed the judge’s decision to approve Voyager Digital’s bankruptcy plan, which includes Binance US purchasing billions of dollars’ worth of assets.
The report was handed to the District Court for the Southern District of New York early this morning by the DoJ’s bankruptcy division in charge of New York (US Trustee, Region 2).
The move was much anticipated because regulators all throughout the country have been very critical of the Voyager and Binance deal. This also applied to the Securities and Exchange Commission of the United States (SEC). The regulator has repeatedly shown antagonism towards the digital asset market. Back in February, the SEC objected to the deal in court.
The expected recovery for Voyager’s consumers under the proposed sale to Binance.US is 73%. The plan, which was put together after FTX—previously the highest-ranking bidder for Voyager—filed for bankruptcy in November, received backing from 97% of the company’s creditors.
There are still many questions, but more discussions on the Voyager appeal could provide the information that the DoJ is indeed looking into Binance US, as several critics have presumed.
Voyager Digital is believed to have sold roughly $350 million worth of on-chain assets over the course of the last six weeks through Binance US, Coinbase, and over-the-counter (OTC) exchanges, according to analyst Wu Blockchain.
If the deal is terminated and Voyager is unable to find a new buyer for its assets, the defunct business may decide to go out of operation. The Voyager Official Committee of Unsecured Creditors, however, asserts that this would probably result in much lower returns to its creditors.
The committee claimed in a tweet from last January that “The Binance.US deal will result in larger recoveries for creditors than a self-liquidation”.