coinspress.com
On March 15, the District Court of the Southern District of New York rejected the U.S. government's argument to halt the acquisition of Voyager, a bankrupt brokerage company, by Binance U.S.
The Court’s decision was made to protect the interests of Voyager’s former clients waiting to receive their funds.
Judge Michael Wiles reiterated his previous approval of Voyager Digital’s Chapter 11 bankruptcy plan, which involves selling assets to Binance.US to regain liquidity and pay back customers.
The Court denied the government’s appeal for a two-week delay of the bankruptcy plan, which accused the plan of protection against fraud, theft, and tax avoidance and demanded the removal of the provision that prevents legal action against those involved in the sale.
However, Judge Wiles dismissed these accusations as exaggerated and mischaracterized, ruling in favor of continuing the bankruptcy plan while confirming the current stay until March 20.
READ MORE: Coinbase CEO Shares Strategic Plan to Navigate Cryptocurrency Market Cycles
On March 7, Judge Wiles approved for Binance.US to acquire Voyager and repay impacted customers with tokens.
Despite the Securities Exchange Commission’s objections that the redistribution of funds from Voyager to Binance.US would violate U.S. securities laws, 97% of 61,300 Voyager account holders approved the restructuring plan, which is estimated to result in creditors recovering approximately 73% of the value of their funds.