Voyager Digital Holdings, a defunct cryptocurrency lender, has agreed with the U.S. government to move forward with a $1 billion proposal to sell its assets to Binance’s U.S. subsidiary.
Voyager, the Official Committee of Unsecured Creditors, and the U.S. government agreed on April 19 in a New York District Court filing that Binance could acquire Voyager’s digital assets as planned.
The filing indicates that the government can continue working on an appeal regarding exculpation provisions, which it claims defend Voyager from certain legal liabilities.
The Voyager Official Committee of Unsecured Creditors announced in a series of tweets on April 19 that all parties had agreed to the resolution as long as “appeals will continue concerning the Plan’s exempt provision.”
A federal magistrate temporarily halted the agreement with Binance.US after the U.S. government requested an emergency stay.
Judge Jennifer Rearden issued an order on March 27 granting the U.S. government’s request to provisionally suspend the proceedings, despite opposition from Voyager and the Committee.
U.S. regulators have made multiple attempts to halt the deal since it was approved on March 7 by U.S. bankruptcy judge Michael Wiles, who stated that delaying the agreement would be detrimental to the interests of Voyager’s erstwhile clients awaiting funds.
A week later, on March 14, the government requested a two-week postponement of the bankruptcy plan. The bankruptcy plan was accused of “immunizing fraud, theft, and tax avoidance,” but Judge Wiles denied the motion, stating that the accusations were “exaggerated and mischaracterized.”
A court filing dated February 28 revealed that 97 percent of the 61,300 Voyager account holders supported the agreement with Binance.US.
Since filing for Chapter 11 bankruptcy in July, Voyager has been taking active measures to coordinate a plan to redistribute funds to creditors.