The US Department of Justice opposes Binance US plan to pay $1 billion to acquire the assets of bankrupt crypto lender Voyager Digital. The Department of Justice has thus appealed against a court decision authorizing this plan. This is a disappointment for Binance, but even more so for users of bankrupt crypto lender Voyager Digital. Indeed, the acquisition of Voyager by Binance US gave them the possibility of recovering part of their funds blocked since July 2022.
US Department of Justice challenges court ruling
After months of litigation over the acquisition of Voyager Digital, the platform Binance US finally prevailed. In his court decision of March 8, Judge Michael Wiles authorized Binance US To Paid $1 Billion to Acquire Bankrupt Crypto Lender’s Assets Voyager Digital. Binance US did not ask for more and this judicial decision arranged it well. Binance US joy may be short-lived, however.
Indeed, the American regulators are fiercely opposed to the fact that Voyager Digital could be bought by Binance US. One of them even went on the offensive. Only one day after the judge’s decision Michael Wiles, the US Department of Justice (DOJ) lodged an appeal to oppose his decision. It’s the U.S. Trustee’s Office, a branch of the Department of Justice responsible for supervising bankruptcies, which filed the appeal.
It is not the first time that the DRY is opposed to Binance US. Last January, the Securities and Exchange Commission (SEC) of the United States had opposed the agreement to acquire Voyager Digital by Binance US. At the time, the SEC claimed that the exchange had not provided solvency guarantees. The American financial policeman has believed that by acquiring Voyager Digital, Binance US could violate federal securities laws through the operation of an unregistered stock exchange in the United States.
Do these questionable SEC regulatory considerations take precedence over the interests of Voyager Digital users? Not estimated the bankruptcy judge Michael Wiles which authorized the agreement for the acquisition of Voyager Digital by Binance US. For him, we must consider the pain of Voyager users who no longer have access to their funds since 2022.
We have creditors who are waiting and who, in the midst of all this uncertainty, do not have access to properties in which they have invested, in some cases, their savings, so we must take action. Wewe have to do something.Judge Michael Wiles
Voyager Digital users are the real victims
Opposition from US regulators to deal to acquire bankrupt crypto lender Voyager Digital by Binance US is largely detrimental to users harmed by society.
Recall that Voyager Digital‘s basic buyer was to be… FTX. FTX who collapsed in November, forcing Voyager Digital to seek another buyer. Binance US came forward, offering Voyager Digital $1.022 billion in exchange for its assets.
The map of Binance US born made it possible to reimburse the funds of Voyager Crypto customers only up to 73%. Thus, the crypto lender Voyager Digital decided to consult its customers before any agreement with Binance US. After the consultation, 97% of them said they were in favor of the plan proposed by Binance US.
The saga over the acquisition of Voyager Digital by Binance USA reveals a very dark side of regulators. In their fight against crypto under the pretext of protecting consumers, they are ready to do anything, including depriving the same consumers…
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