Voyager gained approval to be acquired by Binance.US only two days ago, but the Department of Justice (DOJ) has now filed an appeal in New York in a bid to block the deal.
U.S. Bankruptcy Judge Michael Wiles greenlit Voyager’s restructuring plan on Tuesday, which includes Binance.US paying $20 million to take on Voyager client assets, which were initially valued at $1.3 billion last July.
SEC officials opposed the plan during this week’s hearing, alleging that Binance.US is operating a securities exchange without registration.
“We have creditors who are waiting and who in the midst of all of this uncertainty have no access to property in which they’ve invested, in some cases, their life savings, so we have to take some kind of action,” Wiles said in response to the concerns.
In the appeal, the DOJ claims the SEC has every right to step in in order to ensure securities laws are being followed with regard to the handling of Voyager crypto assets.
“Nothing in this Confirmation Order or the Plan grants this Court jurisdiction over any police and regulatory actions by the SEC, and the SEC shall retain the power and authority to commence and continue any such actions against any person or entity, including without limitation, the Debtors,” the appeal filing read.
Even if the appeal is dropped or dismissed, Voyager could still back out of the deal with Binance.US in the event the bankrupt company finds issues with the exchange’s compliance or security. Proponents of the plan say it can get more than 70% of Voyager debts repaid to creditors.
If the deal goes through (and once it’s closed), Voyager customers will have their assets accessible for the first time since July 2022 when the company froze accounts.
Voyager creditors, estimated to be more than 100,000, will have assets transferred into Binance.US accounts under the acquisition terms.
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