- A New York judge has approved the acquisition of Voyager’s assets by Binance.U.S.
- Judge Michael Wiles noted he couldn’t keep holding up Voyager’s bankruptcy restructuring process.
- The decision would give Voyager the opportunity to issue repayment tokens to customers impacted by its bankruptcy status.
A United States bankruptcy judge has approved the acquisition of over $1.3 billion of Voyager’s assets by Binance.US. Judge Michael Wiles of the Southern District of New York ruled against the filing by the Securities Exchange Commission (SEC), noting that he couldn’t hold up Voyager’s bankruptcy restructuring process while waiting for the SEC to establish its argument.
The SEC had initiated a court process to stop Binance.US from acquiring over $1 billion of Voyager’s assets, with the latter already declared bankrupt.
According to Wiles, his decision would give Voyager the opportunity to close the sale with Binance.US, and issue repayment tokens to customers impacted by its bankruptcy status. It will allow the trading platform to settle up to 73% of their current debt.
This judgment is considered a ray of positivity for Binance exchange which has come under fire since the SEC clamped down on its U.S. representative, Binance.US. Following the SEC’s recent allegation against Binance.US, which labeled it an unregistered company, more details have emerged revealing a suspected attempt by the exchange to deliberately evade regulation.
A report by the Wall Street Journal (WSJ) exposed the details of some internal communication between Binance executives and some members of staff. According to the report, the Binance Global team has been worried about the consequences of operating in the U.S. even as far back as 2019. Hence, it made attempts at exploring various means to boycott regulation. This includes encouraging investors in the U.S. to adopt VPNs to enable them operate stealthily on the global platform.
The latest court judgment offers hope to Binance users and reassures them of fairness in the legal processes. Perhaps, those who suspected the SEC’s move to be a grand plan by the establishment might begin to have a rethink. They could believe that Binance could emerge from the original allegation without extensive consequences.
Both parties might return to court soon over the same issue, as Peter M. Aronoff, a lawyer with the Department of Justice, said after the hearing that the Department is considering appealing Wiles’ decision.