Crypto lending platform Voyager Digital, like a laundry list of other crypto-related companies, filed for bankruptcy in 2022. In fact, June 6 was the day Voyager customers officially heard the bad news. Binance’s American branch, Binance.US, had won the auction of the bankrupt platform in December. However, it is an understatement to say that the takeover is not going entirely smoothly.
After the American Securities and Exchange Commission (SEC) tried to thwart the acquisition of Binance.US about a month ago, Voyager customers are now back on the grind.
Voyager sales uncertain again
The $1 billion sale of Voyager Digital to Binance.US has been temporarily halted by a federal judge following a request from the US government for an emergency stay. The request for an emergency stay was made on March 27 approved by Judge Jennifer Rearden of the US District Court in New York, meaning that the potential deal will now have to wait until at least one decision has been taken on appeal Department of Justice (DOJ) against the bankruptcy plan.
US regulators have made multiple attempts to block the acquisition, but on March 7, judge Michael Wiles gave the green light. In addition to the DOJ, the SEC argued in a March 15 motion that Voyager’s bankruptcy plan would give rise to fraud, theft, or tax evasion. However, this claim was later rejected by Wiles.
The DOJ’s expressed concerns are that the sale could involve unregistered securities and a violation of U.S. securities laws.
How much crypto would customers get back?
More than 97% of Voyager’s 61,300 account holders support the restructuring plan as per the poll which was published in a lawsuit on February 28. The plan is expected to pay out 73% of what customers owe.