The government’s request to pause the $1 billion deal has been denied by a New York court, citing potential harm to customers if the deal were delayed.
In a court filing on Wednesday, a bankruptcy judge ruled that Binance.US’s $1 billion bid to acquire Voyager’s assets should proceed, denying the U.S. government’s request to pause proceedings pending appeal.
The government argued that the deal should be amended or invalidated as it could absolve Voyager and its employees of any violations of tax or securities law. However, Judge Michael Wiles from the Southern District of New York rejected this argument, stating that the deal did not prevent regulatory action and that delaying it would harm Voyager’s clients who have been unable to access their cryptocurrency since the bankruptcy declaration in July 2022.
Wiles criticized the government filings for exaggeration and mischaracterization and stated that delays were a significant issue for Voyager’s customers. The Binance.US purchase, originally scheduled for March 15, has been extended to March 20 under a separate agreement with Voyager.