U.S. Judge Jennifer Rearden has temporarily put Binance.US' $1B Voyager Digital acquisition deal on hold.
The decision came right after the U.S. government requested an emergency stay related to the Department of Justice's (DOJ) appeal to the deal.
The ruling will cause the bankrupt crypto lender Voyager Digital and the crypto exchange Binance's U.S. arm, Binance.US, to have to wait until a final decision on the DOJ's appeal.
- The DOJ applied for the emergency stay on March 17.
- Earlier in March, U.S. Bankruptcy Judge Michael Wiles gave the green light to the deal, citing that even the U.S. Securities and Exchange Commission (SEC) and the DOJ were not sure whether the sales deal would create legal issues.
- However, Wiles' decision was followed by multiple attempts from U.S. regulators to halt the deal.
- If ultimately approved, the acquisition deal will allow Binance.US to buy the assets of Voyager and pave the way for Voyager's investors to get back 50-73% of their holdings.
- The sale is also expected to result in a $100M gain for customers compared to a possible liquidation.
Voyager filed for Chapter 11 bankruptcy in July 2022.
- In December, Binance.US made a deal with Voyager to acquire its assets for $1B.
- The U.S. regulators' objections to the deal are mainly based on the transaction's potential to include the sale of unregistered securities, including Voyager's native token VGX.
