On March 27, a federal judge temporarily halted bankrupt crypto lender Voyager Digital from completing a proposed $1.3 billion sale to Binance.US.
The U.S. government had requested more time to explore the legality of the proposed takeover, prompting the response from judge Jennifer Rearden.
According to reports, the U.S. Attorney’s Office for the Southern District of New York and the Office of the U.S. Trustee, the Department of Justice’s bankruptcy watchdog, filed appeals in March over the approval of the sale.
A Blow to Voyager Customers
The concerns aired were that the sale could involve unregistered securities and violation of U.S. securities law.
The judge overruled Voyager’s argument that further delays could cause Binance.US to back out of the deal entirely. This comes alongside the CFTC lawsuit slapped on Binance on March 27.
