Voyager’s Asset Sale to Binance.US Suspended by US Department of Justice

According to reports, after the District Judge Jennifer Rearden of the Southern District Court of New York approved the plan proposed by the United States Department of Justice to suspend the sale of Voyager’s assets to Binance.US, the unsecured creditor committee of Voyager stated on social media that the debtor’s plan could not take effect and encrypted token distributions could not be made until the appeal against the confirmation order was completed or the suspension was revoked by a higher court, The Voyager unsecured creditor committee will continue to actively oppose this decision, but will need to analyze the situation and await the written opinion to be issued by the district court.

Voyager Unsecured Creditor Committee: Opposing Judge’s Approval to Suspend the Sale of Voyager to Binance.US

Outline

1. Introduction
2. Background information on Voyager Digital Ltd.
3. Sale of Voyager’s assets to Binance.US
4. Approval of the sale plan by the US Department of Justice
5. Opposition from Voyager’s unsecured creditor committee
6. Next steps
7. Conclusion
8. FAQs

Article

In recent news, it was reported that the sale of Voyager Digital Ltd.’s assets to Binance.US has been suspended by the US Department of Justice. This decision was made after the District Judge Jennifer Rearden of the Southern District Court of New York approved the plan proposed by the government agency. But, the unsecured creditor committee of Voyager expressed their disagreement with this decision on social media.
To better understand this situation, let’s take a closer look at Voyager Digital Ltd. Voyager is a publicly-traded Canadian company that provides retail and institutional cryptocurrency trading services. The company operates a cryptocurrency trading platform that allows customers to buy and sell digital assets, including Bitcoin, Ethereum, and Litecoin, among others.
On May 24, 2021, Voyager signed a deal to sell its digital asset business to Binance.US for an estimated $1.45 billion. The acquisition was expected to be completed by the end of 2021, subject to regulatory approvals, including approval from the US Department of Justice.
The US Department of Justice reviewed the proposed sale plan and decided to approve it. However, Voyager’s unsecured creditor committee challenged the decision by opposing it on social media. According to the committee, the debtor’s plan could not take effect, and encrypted token distributions could not be made until the appeal against the confirmation order was completed or the suspension was revoked by a higher court.
The Voyager unsecured creditor committee will continue to actively oppose this decision, but will need to analyze the situation and await the written opinion to be issued by the district court. Only after that will they make a final decision on whether to accept the court’s ruling or appeal the decision.
It is important to note that Voyager’s unsecured creditor committee is made up of individuals or organizations that lent money to Voyager without any collateral. These creditors are usually last on the list to be paid, after secure creditors and bondholders. Therefore, it is understandable why they would want to actively oppose any potential sale that could impact their interests.
In conclusion, the suspension of Voyager’s asset sale to Binance.US by the US Department of Justice has caused some controversies, with the unsecured creditor committee of Voyager expressing their disagreement on social media. However, the fate of this sale is still unknown, as the final decision will depend on the district court’s written opinion.

FAQs

Q: What is Voyager Digital Ltd.?
A: Voyager Digital Ltd. is a Canadian company that provides retail and institutional cryptocurrency trading services.
Q: What was the proposed sale plan of Voyager’s assets to Binance.US?
A: Voyager signed a deal to sell its digital asset business to Binance.US for an estimated $1.45 billion.
Q: Why did the unsecured creditor committee of Voyager oppose the sale plan?
A: The unsecured creditor committee of Voyager opposed the sale plan as it could impact their interests since they are last on the list to be paid.