The $1 billion deal negotiated by Binance.US to buy the assets of insolvent crypto lender Voyager should be put on hold while important legal issues are resolved, the US authorities argued in a filing on Tuesday.
The action was taken in response to a US appeal. The Department of Justice's Trustee office, which oversees bankruptcy cases, is worried that the agreement will basically absolve Voyager and its employees of any tax or securities law breaches. The government cannot be forced to speak right now or to keep quiet indefinitely in front of Voyager and Binance by the Court.
According to the U.S. Damian Williams is an attorney. "Nothing in the Bankruptcy Law gives courts the authority to release parties from their obligation to the government for past or upcoming activity. Williams argued that until appeals are reviewed by higher courts, the agreement - or at least those portions that restrict the government's ability to enforce the legislation - should be put on hold.
Despite the Securities and Exchange Commission's worries that Voyager's VGX token would be an unregistered security, New York bankruptcy judge Michael Wiles approved the transaction on Monday.
The US Department of Justice (DOJ) appealed a New York bankruptcy judge's order to permit Binance.US to buy the assets of bankrupt crypto lending platform Voyager Digital for billions of dollars on Thursday evening, March 10.
The US Department of Justice (DOJ) has appealed a New York bankruptcy judge's order to permit Binance.US to pay billions of dollars for the assets of the bankrupt crypto lending company Voyager Digital. After a four-day hearing by the Office of the United States Trustee, the department of the Justice Department in charge of bankruptcy, Judge Michael Wiles authorized the arrangement, and the appeal was filed the next day. This comes after it was revealed earlier today that the creditors of Voyager are opposed to the purchase of Binance.US being challenged in court.