A federal judge has put a hold on the sale of Voyager assets to Binance.US following the U.S. government’s filing for an emergency stay. This ruling comes on the heels of the Commodity Futures Trading Commission (CFTC) suing Binance’s global entity for allegedly permitting U.S. clients to engage in illegal crypto derivatives trading on the exchange.
Voyager sale hits another roadblock
Bankruptcy Judge Michael Wiles of the New York Southern Bankruptcy Court previously granted approval for the sale, despite objections from government agencies. The sale was intended to expedite the bankruptcy process and ensure the repayment of Voyager’s creditors.
Following CFTC’s lawsuit, U.S. District Court Judge Jennifer Rearden has granted the Department of Justice’s request to stay the sale pending an appeal. In her ruling, she noted that after considering written submissions, conferences, and oral arguments, the government’s emergency motion was granted. The reasons for the ruling will be issued soon.
Judge Wiles has previously emphasized the importance of speeding up the bankruptcy process, stating that agencies such as the Securities and Exchange Commission and U.S. Trustee’s office had not made a convincing case for delaying the sale.
Voyager filed for bankruptcy in July of last year.
Despite these objections, Judge Wiles maintained that his priority was to ensure that Voyager’s creditors received their money as soon as possible. This decision has now been temporarily halted pending an appeal from the Department of Justice.
As the case moves forward, it remains to be seen how the courts will balance the interests of creditors with those of the government agencies involved. With both sides likely to continue fighting for their priorities, it is clear that this case will be closely watched by many in the financial world.