Bankrupt cryptocurrency lender Voyager Digital Holdings has sealed a deal with the United States federal government that moves forward a $1 billion plan that would allow Voyager to sell its assets to the U.S. arm of Binance.
An April 19 filing in a New York District Court saw Voyager, the Official Committee of Unsecured Creditors and the U.S. government agree that the deal for Binance to acquire Voyager’s digital assets could move forward as planned.
The filing states the government can continue to work on an appeal on exculpation provisions — what it claims are conditions allowing Voyager to be protected from certain legal liabilities.
The Voyager Official Committee of Unsecured Creditors stated in a series of tweets on April 19 that all parties agreed on the resolution provided that the “appeals will continue with respect to the Plan’s exculpation provision.”
2/ The resolution is embodied in a joint stipulation providing that the appeals will continue with respect to the Plan’s exculpation provision. The Government has agreed that the Plan may move forward without such provision and will not otherwise be subject to the stay.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 19, 2023
Previously the deal with Binance.US was temporarily halted by a federal judge after a request by the U.S. government for an emergency stay.
Despite Voyager and the Committee both challenging the emergency stay application, Judge Jennifer Rearden granted the U.S. government’s request to temporarily suspend the proceedings in a March 27 court order.
U.S. regulators have made several attempts to halt the deal ever since it was granted approval to proceed on March 7 by U.S. bankruptcy judge Michael Wiles, who noted that delaying the deal will harm the interests of Voyager’s former clients waiting to receive funds.
A week later, the government requested on March 14 to delay the bankruptcy plan by two weeks. It accused the bankruptcy plan of “immunizing fraud, theft or tax avoidance,” however the motion was denied by Judge Wiles, who said the accusations were “exaggerating and mischaracterizing.”
A Feb. 28 court filing revealed that 97% of the 61,300 Voyager account holders were in favor of the deal with Binance.US.
Voyager has been actively taking steps to coordinate a plan for the redistribution of funds to creditors since it filed for Chapter 11 bankruptcy in July.