The U.S. Department of Justice (DOJ) has filed an appeal challenging the decision of a New York bankruptcy judge to allow Binance.US to acquire the assets of bankrupt crypto lender, Voyager Digital.
The appeal was filed by the U.S. Trustee’s Office, which oversees bankruptcies, just one day after Judge Michael Wiles approved the deal following a contentious, four-day-long hearing.
Regulators, including the U.S. Securities and Exchange Commission (SEC), have opposed the acquisition, with the SEC arguing that Binance.US may be violating federal securities laws by operating an unregistered securities exchange in the U.S.
However, Judge Wiles appeared unmoved by the SEC’s concerns, stating that action had to be taken to provide creditors access to their investments.
Under the proposed sale, Voyager’s customers would see an estimated 73% recovery. The plan was supported by 97% of Voyager’s creditors, and if the sale is blocked or Voyager decides not to go through with it, liquidation could result in smaller returns for creditors.
The DOJ’s appeal adds further uncertainty to the already-controversial acquisition, but it remains to be seen whether regulators will be successful in their efforts to block the deal.
