The bankruptcy court denies the United States government’s appeal to postpone the Voyager-Binance.US agreement

With the bankruptcy filing of Voyager in July 2022, customers have been unable to access their cryptocurrency.

In a court filing dated March 15, a bankruptcy judge determined that Binance.US’s  $1 billion offer to acquire Voyager’s assets should continue, rejecting the U.S. government’s request to postpone the proceedings until the appeal.

According to the court filing, the judge denied the government’s request for a two-week stay of the Confirmation order, which would have delayed the execution of the bankruptcy plan.

The government filed an appeal on March 14 alleging that the bankruptcy plan would shield persons implicated in fraud, theft, or tax evasion and requesting the removal of a clause prohibiting U.S. authorities from taking legal action against them.

Voyager agreed in a separate agreement to extend the March 15 start date for the Binance.US acquisition to March 20.

Voyager filed for bankruptcy protection in July 2022 after Three Arrows Capital (3AC), a cryptocurrency hedge fund, failed to repay a significant debt commitment to Voyager.

At the time of the bankruptcy filing, the exchange’s assets were valued at around $1.3 billion, with over $650 million owed to 3AC – a considerable decrease from its year-end 2021 asset value of $5.8 billion.

In recent court records, Judge Michael Wiles of the Southern District of New York indicated that the previously authorized arrangement did not clear Voyager and its employees of any tax or securities law violations.

Wiles also cautioned that any delays in the process would harm Voyager’s customers, who have been unable to access their crypto since the bankruptcy filing in July 2022.

Wiles said in his writing that the government “exaggerates and, in some cases, mischaracterizes what I have done and the authority on which I have relied, and in other instances relies on hyperbole or straw man arguments.”

”Wiles said that provisions in the agreement “do not prevent any regulatory action, including steps to halt the cryptocurrency sales and dividends anticipated under the plan.” “Delays are also a major concern for the clients of the Debtors.”

As opposed to what has been reported in the media, Wiles’ orders indicate that the terms of the agreement do not limit regulatory action, including efforts to block the cryptocurrency sales and distributions stated in the plan.

Also Read: Credit Suisse Is On The Brink Of Collapse As The Bitcoin Banking Plot Gains Momentum