The United States District Court for the Southern District of New York has approved Binance.US’s acquisition of bankrupt brokerage company Voyager Digital, rejecting the US government’s motion to halt the deal. Judge Michael Wiles ruled that any delays in the acquisition would harm Voyager’s former clients who are waiting to return their funds. The court also confirmed its prior approval of Voyager Digital’s Chapter 11 bankruptcy plan, which involves selling billions of dollars in assets to Binance.US to regain liquidity and pay back customers.
The government’s appeal for a stay of the confirmation order was denied, as Judge Wiles deemed the accusations of fraud, theft, or tax avoidance as exaggerations and mischaracterizations. The appeal had also demanded the removal of a provision preventing US authorities from pursuing anyone involved with the sale. The court’s decision allows Binance.US to close the sale and issue repayment tokens to impacted Voyager customers.
The US Securities and Exchange Commission had objected to the redistribution of funds from Voyager to Binance.US, citing violations of US securities laws. However, Judge Wiles rejected their arguments, stating that 97% of 61,300 Voyager account holders favored the restructuring plan. The bankruptcy plan is expected to result in Voyager creditors recovering approximately 73% of the value of their funds.
This ruling is a significant win for Voyager Digital and Binance.US, as it allows them to move forward with their acquisition plans and repay impacted customers. It also sets a precedent for future bankruptcy cases involving crypto-related companies, as it shows that bankruptcy courts may be willing to approve deals involving the transfer of crypto assets. The decision highlights the importance of transparency and customer satisfaction in bankruptcy proceedings, as shown by the overwhelming support for Voyager Digital’s restructuring plan. Overall, this ruling is a positive step towards building a more stable and trustworthy crypto ecosystem.
This article has been originally published at: https://blockchain.news/news/court-approves-voyager-digitals-acquisition-by-binanceus