• The U.S. government has requested a two-week delay on the court’s approval of a $1 billion transaction made by Binance.US to purchase assets of Voyager in order to file an appeal.
• The arrangement includes a clause that would prevent legal action from being taken against anyone connected to the sale, which the court authorized after finding that 97% of Voyager customers supported it.
• The U.S Trustee and other government lawyers have argued that this clause would make it difficult for the government to „exercise its police and regulatory responsibilities“ and have asked for a two-week hold on the court’s approval until an appeal can be submitted.
U.S Government Requests Two-Week Delay
The U.S government is asking for a two-week delay on the court’s approval of a $1 billion transaction made by Binance US to purchase assets of Voyager in order to file an appeal. This plan includes a clause that would prevent legal action from being taken against anyone connected with the sale, which was approved by New York bankruptcy judge Michael Wiles after 97% of customers were found to support it.
Government Argues Exculpation Provision is Unlawful
The U.S Trustee and other government lawyers have argued that this exculpation provision would make it more difficult for the government to „exercise its police and regulatory responsibilities“. They also claim that such a provision is unlawful as nothing within Bankruptcy Law allows courts to absolve parties from responsibility towards the Government both in regards past actions or future actions, as stated by Damian Williams‘ filing as U.S Attorney..
SEC Objects Plan
The Securities and Exchange Commission (SEC) also objected to this plan citing it as „extraordinary“ and „highly improper“. They believe that this arrangement could essentially exonerate Voyager and its employees from any violations of securities or tax laws, preventing them from taking any necessary action if needed later down the line .
Two Week Hold Requested
In response, William Harrington filed before New York bankruptcy court requesting for a two-week hold on court authorization until appeals are resolved in higher courts so they can submit their own appeal opposing this agreement as well as those portions restricting their authority .
Final Decision Pending
At present, there hasn’t been much movement since Judge Wiles allowed last week’s sale but we will likely see further developments soon depending on how long it takes for appeals process to conclude or whether any new issues arise during this period .