The US Government Suggested To Block Voyager And Binance $1 Billion Deal

Key Points:

• Binance.$1 US’s billion offer to purchase the assets of insolvent crypto lender Voyager should be placed on hold until significant legal issues are resolved.
• The Department of Justice is opposed to clauses that would shield the firm from punishment for past misdeeds.

The US government said in a filing on Tuesday that the $1 billion agreement made by Binance.US to purchase the assets of insolvent crypto lender Voyager should be placed on hold while significant legal problems are resolved.

The action followed an appeal by the U.S. Trustee, a division of the Department of Justice in charge of bankruptcy proceedings, who is concerned that the agreement will essentially acquit Voyager and its employees of any tax or securities law violations. The Court cannot order the government to talk now or permanently remain silent in front of Voyager and Binance.

According to the filing by U.S. Attorney Damian Williams. “Nothing in the Bankruptcy Law authorizes courts to absolve parties of duty to the government for past or future action.  Williams said the agreement should be delayed – or at least those aspects that limit the government’s capacity to implement the legislation – until appeals are heard in higher courts.

Last Monday, New York bankruptcy judge Michael Wiles accepted the purchase, despite the Securities and Exchange Commission’s concerns that Voyager’s VGX token would be an unregistered securities.

As previously reported by Coincu, the US Department of Justice (DOJ) filed an appeal on Thursday night, March 10, challenging a New York bankruptcy judge’s decision to allow Binance.US to acquire the assets of insolvent crypto lending platform Voyager Digital for billions of dollars.

The US Department of Justice (DOJ) has filed an appeal challenging a New York bankruptcy judge’s decision to enable Binance.US to buy the assets of the insolvent crypto lending business Voyager Digital for billions of dollars. The appeal was submitted a day after Judge Michael Wiles approved the agreement following a four-day hearing by the Office of the United States Trustee, the Justice Department component in charge of bankruptcy. This comes after it was disclosed earlier today that Voyager creditors are opposed to any legal challenge to the Binance.US purchase.

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