New York judge has ruled that the proposed acquisition deal between Binance. One of the largest cryptocurrency exchanges, and the brokerage firm Voyager can proceed without the transfer of assets. The ruling came after a group of Voyager shareholders filed a lawsuit. Claiming that the deal would result in an unfair dilution of the value of their shares, while benefiting Binance.
Acquisition of bankrupt brokerage firm Voyager Digital
The acquisition of bankrupt brokerage firm Voyager Digital by Binance.US will not be halted. According to the United States District Court for the Southern District of New York. Judge Michael Wiles rejected the US government’s arguments and expressed concerns that any delay would harm the interests of Voyager’s former clients, who are waiting to recover their funds.
Voyager Digital’s Chapter 11 bankruptcy plan
March 15, Judge Wiles reaffirmed his earlier approval of Voyager Digital’s Chapter 11 bankruptcy plan. The plan includes selling billions of dollars in assets to Binance.US to improve liquidity and repay customers.
Court denied the government’s appeal
The court denied the government’s appeal for a two-week delay in the bankruptcy plan’s implementation. Calling the accusations of “immunizing fraud, theft, or tax avoidance” an exaggeration. The government had also requested the removal of a provision that prevents them from pursuing legal action.
Despite rejecting the government’s arguments, Judge Wiles did confirm the duration of the current stay, which ends on March 20. This decision is a significant win for Voyager Digital and Binance.US.
As it allows them to move forward with the acquisition and fulfill their obligations to Voyager’s former clients.
The ruling is a significant win for Binance, which has been looking to expand its operations in the US market. Binance has been facing regulatory scrutiny in various jurisdictions, and the ruling will help it to strengthen its position in the US market.
Binance CEO, Changpeng Zhao, welcomed the ruling and stated that it would strengthen Binance’s position in the US market. He also said that the deal was still subject to approval by Voyager shareholders and regulatory authorities.
If the deal is approved, it would give Binance a considerable foothold in the US market. Which has been challenging for many foreign crypto exchanges to penetrate. The ruling has also been viewed as a positive development for the crypto industry.
