DOJ Appeals Against Binance.US’s Billion-Dollar Plan to Acquire Voyager Digital’s Assets

The U.S. Department of Justice (DOJ) has filed an appeal late Thursday evening challenging a New York bankruptcy judge’s decision to allow Binance.US’s billion-dollar plan to acquire the assets of bankrupt crypto lender Voyager Digital. The appeal comes just one day after Judge Michael Wiles approved the deal after a contentious, four-day-long marathon hearing.

The U.S. Trustee’s Office, an arm of the DOJ responsible for overseeing bankruptcies, filed the appeal. Regulators, including the U.S. Securities and Exchange Commission (SEC) and various state regulators, have been staunchly opposed to the proposed deal, citing concerns that Binance.US may be violating federal securities laws by operating an unregistered securities exchange in the U.S.

Despite the SEC’s objections, Judge Wiles approved the sale to Binance.US. Under the proposed sale, Voyager’s customers would see an estimated 73% recovery, and the plan was supported by 97% of Voyager’s creditors. FTX, Voyager’s previous top bidder, filed for its own bankruptcy in November, leading to the formation of this new deal.

If Voyager decides not to proceed with the current plan to sell itself to Binance.US, or if regulators are successful in blocking the sale, another option is for the bankrupt lender to liquidate itself, which would likely result in much smaller returns for creditors.

In response to the DOJ’s appeal, Binance.US issued a statement expressing disappointment and affirming its commitment to providing a safe and secure trading experience for its customers.

Binance.US remains confident in its ability to resolve the DOJ’s concerns and believes that the proposed acquisition of Voyager’s assets is in the best interest of all parties involved.