Bankrupt crypto lender, Voyager Digital, has reached an agreement with the US government, allowing the sale of its assets to Binance US for $1 billion.
The agreement, documented in an April 19 filing in a New York District Court, involved Voyager, the Official Committee of Unsecured Creditors, and the US government. This paves the way for the sale of Voyager’s digital assets to Binance to proceed as planned.
According to tweets by the Voyager Official Committee of Unsecured Creditors on April 19, all parties involved have agreed on a resolution that allows the government to pursue an appeal regarding the exculpation provisions of the plan. These provisions reportedly protect Voyager from specific legal liabilities.
The acquisition by Binance.US was briefly paused by a federal judge following the US government’s plea for an emergency stay. Judge Jennifer Rearden allowed the government’s motion to temporarily halt the proceedings on March 27 despite objections from Voyager and the Committee.
After receiving approval to proceed on March 7 from US bankruptcy judge Michael Wiles, U.S. regulators have repeatedly attempted to stop the deal. Judge Wiles had stressed that delaying the deal would harm the interests of Voyager’s former clients, who are waiting for their funds.
On March 14, the government requested a two-week delay, claiming that the plan protected fraud, theft, or tax evasion. However, Judge Wiles dismissed the request, stating that the allegations were exaggerated and misrepresented.
According to a court filing on February 28, the Binance.US deal had the support of 97% of the 61,300 Voyager account holders. Since filing for Chapter 11 bankruptcy in July 2022, Voyager has been actively working on a plan to distribute funds to creditors.
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