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#Suspension of Voyager Asset Sale to Binance.US Approved by Southern District Court of New York

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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

#Suspension of Voyager Asset Sale to Binance.US Approved by Southern District Court of New York

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token distributions could not be made until the appeal against the confirmation order was completed or the suspension was revoked by a higher court, The Voyager unsecured creditor committee will continue to actively oppose this decision, but will need to analyze the situation and await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

As per recent reports, the United States Department of Justice’s plan to halt the sale of Voyager’s assets to Binance.US has been approved by District Judge Jennifer Rearden of the Southern District Court of New York. The decision has been met with opposition from the unsecured creditor committee of Voyager, who have taken to social media to express their concerns.
##What Led to This Decision?
The decision to halt the sale of Voyager’s assets to Binance.US stems from an alleged violation of securities laws by Voyager. The US Securities and Exchange Commission (SEC) had filed a lawsuit against Voyager, accusing the digital asset broker of misleading investors about how it generates commission-free trading revenue. The SEC alleged that Voyager had been lying to its investors about receiving payment for order flow from market makers.
The lawsuit had claimed that Voyager had been running a hidden revenue scheme where it allegedly earned millions of dollars by secretly routing trades to other broker-dealers for execution at higher prices. However, Voyager had denied these allegations.
The proposed plan by the Department of Justice to suspend the sale of Voyager’s assets to Binance.US is to ensure that the unsecured creditors of Voyager are protected against any potential losses that may arise from the ongoing lawsuit.
##What Does This Mean for Voyager and Binance.US?
The approval of the suspension plan by District Judge Jennifer Rearden means that the sale of Voyager assets to Binance.US cannot take place until the appeal against the confirmation order is completed or the suspension is lifted by a higher court.
This decision may cause difficulties for Voyager and Binance.US, as the assets that were to be sold were a critical part of Voyager’s operational capacity, providing Binance.US access to new crypto assets and enabling Voyager to meet its regulatory and capital requirements.
##What is the Unsecured Creditor Committee’s Plan?
The unsecured creditor committee of Voyager has expressed its opposition to the decision and stated that the debtor’s plan cannot take effect until the appeal against the confirmation order is completed or the suspension is lifted by a higher court.
The committee has also mentioned that they 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.
##Conclusion
The decision of the Southern District Court of New York to approve the suspension of the sale of Voyager’s assets to Binance.US has left both companies in a precarious situation. The decision has been met with opposition from the unsecured creditor committee of Voyager, who have expressed their concerns about the impact this could have on the company.
The situation is expected to develop further in the coming days and weeks, and we will be closely monitoring any updates related to this case.
###FAQs
1. Why did the US Department of Justice decide to halt the sale of Voyager’s assets to Binance.US?
The US Department of Justice decided to halt the sale of Voyager’s assets to Binance.US due to an alleged violation of securities laws by Voyager.
2. What do the unsecured creditors of Voyager stand to lose?
The unsecured creditors of Voyager stand to lose a significant amount of money if the assets sales to Binance.US were to go through and Voyager loses the ongoing lawsuit against SEC.
3. What is the next course of action for Voyager and Binance.US?
Voyager and Binance.US need to analyze the situation and await the written opinion to be issued by the district court to formulate any next course of action.

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