A few days ago, Michael Wiles (a US Bankruptcy Judge) permitted Voyager Digital (a troubled crypto lending platform) to accomplish its selling contract of $1B for its assets with Binance.US. Nonetheless, the matter did not go smoothly as the US Department of Justice (DOJ) does not favour it. The agency submitted an appeal confronting the decision made by the bankruptcy court. The appeal was filed by the US Trustee’s Office and DOJ’s arm that administers bankruptcy cases.
DOJ Appeals the Bankruptcy Court to Stop Voyager Deal after SEC’s Failure
This move is not surprising as a lot of opposition has been experienced by the contract between the two companies from the regulatory agencies operating within the country. This also takes into account the Securities and Exchange Commission of the United States. The watchdog has frequently expressed aggression against the digital asset market. In this respect, an objection was filed by the SEC in February to stop the contract from taking place.
In addition to this, the financial regulatory alleged in the objection that Binance.US infringed the federal securities laws. Nonetheless, the judge did not deem the objection to be based on strong grounds. As a result, Wiles rejected that appeal. After that, the exclusive plea made by the DOJ is anticipated to meet the analogous consequences.
Voyager Creditors Might Face Bad Consequences If the Deal Is Off
It appears that the court is on the side of Voyager as well as its creditors. Nevertheless, the regulatory bodies have been endeavouring to reach a ruling that prevents the contract from happening. The company submitted its bankruptcy filing back in 2022’s November. A staggering 97% of the creditors associated with the crypto brokerage platform also supported this decision. If the regulatory entities effectively prevent the sale of the assets, it would make things worse for the creditors.