US government’s request to halt Binance’s acquisition of Voyager turned down, what does this mean for BNB?
- A New York bankruptcy judge denied the US government’s request to delay the $1 billion acquisition of Voyager.
- Michael Wiles, a judge in the Southern District of New York said that waiting longer would harm Voyager’s clients.
- Under a separate deal agreed to by the bankrupt crypto lender, the Binance.US purchase will come into effect on March 20.
The world’s largest exchange by trade volume made a $1 billion bid to acquire bankrupt crypto lender Voyager. This acquisition faced opposition from the US government and regulators citing regulatory hurdles.
The latest update from bankruptcy court denies the US government's request to delay the acquisition and cites debtor woes as a concern.
Also read: Bitcoin reserves on exchanges continue climbing amidst rising inflows, is this a sell signal?
New York bankruptcy judge denies request to delay Binance’s Voyager acquisition
Michael Wiles, a US bankruptcy judge, ruled in a court filing that Binance’s $1 billion bid to buy Voyager’s assets should go ahead. The judge denied a bid by the US government to put proceedings on hold pending appeal.
While US Attorney Damian Williams argued that the deal should be amended or struck down, the judge ruled otherwise. Voyager clients haven’t been able to access their crypto since bankruptcy was declared in July 2022.
Wiles argued that government filings exaggerate and rely on hyperbole or on ‘straw man’ arguments. Provisions in the deal do not prohibit regulatory action and the delay in itself is an issue for debtor’s customers.
Deal between Voyager and Binance.US regarding purchase of the lender’s assets
Voyager and Binance.US agreed in a separate deal that the exchange’s purchase of the bankrupt lender’s assets will come into effect on March 20.
Binance’s native token BNB continued its recovery, yielding 1.2% gains for holders since Wednesday. The exchange token is changing hands at $317.41, close to its 24-hour high, at press time.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
