Voyager’s $1B Dream Sale Crushed: Will Customers Ever Get Their Money Back?
A United States federal judge has granted the government’s request to temporarily suspend Voyager Digital Ltd.‘s bankruptcy plan, pausing the proposed sale of the cryptocurrency lending company to Binance.US.
U.S. District Judge Jennifer Rearden approved the government’s request for a stay on the appeal of Voyager’s recently approved bankruptcy plan on Monday, with a detailed opinion set to be released soon, Bloomberg reported.
This development is a setback for Voyager, which has been attempting to emerge from bankruptcy and reimburse its customers since filing for Chapter 11 protection last year.
The intended sale to Binance’s US subsidiary is valued at approximately $1 billion, a figure that largely represents the worth of Voyager’s customer accounts.
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Voyager’s official creditor committee, which represents the interests of customers in the bankruptcy process, said it is assessing the situation.
In a tweet, the committee stated that it “will continue to aggressively oppose the Government’s efforts.”
The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CEO Changpeng Zhao on Monday, accusing them of deceptive compliance measures.
The appeal of Voyager’s bankruptcy plan began prior to the initiation of the CFTC’s legal action.
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Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
Photo via Pixabay.