Last updated on March 23rd, 2023 at 07:29 am
On March 14, 2023, the United States Trustee and other government attorneys filed a motion objecting to a clause in Voyager Digital’s Chapter 11 bankruptcy plan. The plan sought to sell the bankrupt lender’s digital assets to cryptocurrency exchange Binance.US while preventing anyone connected to the sales from being sued.
The government officials objected to the clause in the bankrupt crypto lender’s plan to sell its digital assets to cryptocurrency exchange Binance.US because it would prevent them from taking legal action against anyone involved in the sales.
The motion, a Stay Motion, requested a partial stay pending an appeal of the March 8, 2023 Confirmation Order to allow the government officials to file an appeal within two weeks. The officials objected to any restrictions on their authority to penalize anyone participating in the proposal and a related bankruptcy-exit plan approved by US bankruptcy judge Michael E. Wiles on March 7, 2023.
Assistant US attorney Larry Fogleman explained that some components of the agreement could move through, but not the legal safeguards as they were part of Voyager’s Chapter 11 strategy.
Tomorrow just got interesting. 👀#Voyager #VGX #Binance #Bankruptcy #DOJ pic.twitter.com/23bqIWpX2M
— VGX Heroes 🟣 (@VGX_Heroes) March 15, 2023
Judge Wiles agreed to hold a hearing to determine whether to obstruct the exculpation clauses in the plan, which is a standard procedure in corporate bankruptcy cases to protect executives from being held responsible for implementing a court-approved plan.
It was earlier reported that the US Trustee for Region 2 contested the Southern District of New York’s approval of Voyager Digital’s Chapter 11 bankruptcy plan on March 8, 2023. The plan allowed the bankrupt cryptocurrency brokerage company to sell off its multibillion-dollar assets to recover money to pay back consumers.
On March 8, the Southern District of New York’s approval of Voyager Digital’s Chapter 11 bankruptcy plan was reportedly contested by the U.S. Trustee for Region 2. The motion would have allowed the bankrupt cryptocurrency brokerage company to sell off its multibillion-dollar assets in an effort to recover money to pay back consumers.
The U.S. Securities and Exchange Commission (SEC) and numerous state agencies have strongly opposed the proposed acquisition, alleging that Binance.US may be operating an unregistered stock exchange in the United States, potentially violating the law.
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