U.S. Justice Department Opposes Voyager Digital’s Sale to Binance.US, Appeals Judge’s Decision – Here's the Latest

cryptonews.com:

Shortly after bankrupt crypto lender Voyager Digital was authorized to sell its assets to crypto exchange Binance.US and transfer its users to the platform, the U.S. Department of Justice (DOJ) made an attempt to block the sale by filing an appeal that could derail it.

Registered with the U.S. Bankruptcy Court for the Southern District of New York, the appeal was filed by the U.S. Trustee’s Office which is a branch of the department tasked with overseeing the administration of bankruptcy cases and private trustees.

Earlier this month, U.S. bankruptcy Judge Michael Wiles gave the green light to Voyager's restructuring plan at a hearing in New York, enabling the collapsed lender to sell its assets to Binance.US under a deal estimated to be worth about $1.3 billion. Wiles authorized the restructuring plan in spite of an objection filed by the U.S. securities markets regulator, the Securities and Exchange Commission (SEC). The judge dismissed the agency’s opposition to the planned deal, ignoring the SEC’s concerns over Binance.US running an unregistered securities exchange.

Once the sale would go through, Voyager’s customers would be allowed to make withdrawals, with an estimated recovery rate of 73% of the value of their deposits at the time when the lender filed for bankruptcy. 

If the deal is scrapped and Voyager does not find another buyer for its assets, the collapsed company could also make a decision to liquidate itself. This, however, would most likely generate significantly smaller returns to its creditors, according to the Voyager Official Committee of Unsecured Creditors.

“The Binance.US transaction will result in greater recoveries for creditors than a self-liquidation,” the committee said in a tweet last January. 

“Bi