The U.S. government wants to halt a $1 billion deal between Binance.US and Voyager Digital.
The government said the deal should be put on hold until key legal objections are resolved.
After FTX collapsed in November, Binance looked like a good fit to acquire Voyager Digital’s assets.
Government tries to block Voyager-Binance.US trade
The U.S. government revealed in a filing Tuesday that it wants Binance.US’ proposed $1 billion deal to buy assets of bankrupt cryptocurrency lender Voyager on hold until key legal objections are resolved.
This latest cryptocurrency news follows an appeal by the U.S. Trustee, an arm of the Justice Department that handles bankruptcy cases. The U.S. trustee is concerned that the deal will ensure that Voyager and its employees will not be held liable for violating tax or securities laws.
Documents filed by US Attorney Damian Williams said;
“The court cannot tell the government to speak now or remain silent forever until Voyager and Binance.US are married. Nothing in the Bankruptcy Code allows a court to absolve a party from responsibility for the government’s past and future actions.”
According to Williams, approval of the deal, or at least the portion that limits the US government’s ability to enforce it, should be suspended until the appeal is properly dealt with in a higher court.
Binance.US on track to complete acquisition of Voyager Digital
The appeal comes a week after New York bankruptcy judge Michael Wiles approved the deal. The judge cast considerable doubt on the SEC’s argument that Voyager’s VGX token may be an unregistered security.
Last month, Voyager Digital sold some of its assets through U.S.-based cryptocurrency exchange Coinbase.
The company received approximately $100 million in USD Coin (USDC) stablecoin for the sale of multiple tokens, including Shiba Inu, Ethereum and the native Voyager token.
Binance.US is in the prime position to acquire Voyager Digital assets following the collapse of FTX. FTX previously agreed to acquire Voyager Digital before the cryptocurrency exchange collapsed.
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Information source: compiled from COINJOURNAL by 0x information.Copyright belongs to the author Hassan Maishera, without permission, may not be reproduced