Mar 28, 2023

Author of the article: Article content A federal judge on Monday temporarily stopped bankrupt Voyager Digital from completing a proposed $1.3 billion sale to crypto exchange Binance.US, allowing the U.S. government more time to pursue appeals that challenge the legality of the deal. We apologize, but this video has failed to load. Try refreshing your browser, or Judge halts Voyager Digital's $1.3 bln sale to Binance.US Back to video The U.S. Attorney’s Office for the Southern District of New York and the Office of the U.S. Trustee, the Department of Justice’s (DOJ) bankruptcy watchdog, filed appeals in early March over a bankruptcy court’s approval of the sale. Advertisement 2 THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword REGISTER TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors or Article content Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. Email Address Sign Up By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Thanks for signing up! A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Financial Post Top Stories will soon be in your inbox. We encountered an issue signing you up. Please try again Article content They argued that the protections could rubber stamp crypto tokens that might be unregistered securities, as well as transactions that could be illegal under U.S. securities laws. U.S. District Judge Jennifer Rearden in Manhattan ruled Monday that the sale should be put on hold, overruling Voyager’s argument that a delay could cause Binance.US to back out of the deal entirely. Binance.US and Voyager did not immediately respond to requests for comment late on Monday. Voyager, which filed for bankruptcy in July, said in court filings last week that the DOJ appeals should not be allowed to keep the company and its customers “in limbo” during a legal process of uncertain duration. Binance.US has agreed to pay $20 million in cash to Voyager, and take on crypto assets deposited by Voyager customers. Those assets, valued at $1.3 billion in February, account for the bulk of the deal’s valuation, according to Voyager. Advertisement 3 Article content The international Binance crypto exchange was sued on Monday in a separate legal action by the U.S. Commodity Futures Trading Commission (CFTC), which filed a lawsuit alleging that Binance.com operated an “illegal” exchange and a “sham” compliance program. Binance.US maintains publicly that it is entirely independent of Binance.com, operating as the “U.S. partner” to the world’s biggest crypto exchange. The CFTC disputed that in its lawsuit, alleging that Binance personnel “dictated Binance.US’s corporate strategy, launch and early operations” and that it has an ongoing relationship with BAM Trading, a company controlled by Binance CEO and founder Changpeng Zhao. (Reporting by Jaiveer Singh Shekhawat in Bengaluru and Dietrich Knauth in New York; Editing by Devika Syamnath and Jamie Freed)