Voyager Digital’s deal with Binance paused by district court

By Sarah Lizee

Olympia, Wash., March 28 – Voyager Digital Ltd.’s $1.3 billion sale and transfer deal with BAM Trading Services Inc. (Binance US) has been temporarily stayed by a Manhattan district court.

As previously reported, Voyager’s Chapter 11 plan was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on March 3. Region 2 U.S. trustee William K. Harrington filed an appeal the following day.

Through the confirmation order, the court overruled an objection from the Securities and Exchange Commission, which stated some activities proposed in the plan may create unspecified securities law violations.

The United States and the U.S. trustee sought either a stay of the exculpation provision in the confirmation order and plan while the appeal is pending, or a stay of the confirmation order while the government sought similar relief from the district court.

The official committee of unsecured creditors said in a Monday tweet that it is still analyzing the situation and awaiting the court’s forthcoming written opinion.

“We will continue to aggressively oppose the government’s efforts and will provide further updates as they become available,” the committee said, noting that the plan cannot go effective and distributions cannot be made until the government’s appeal is complete or the stay is vacated by a higher court.

Voyager Digital is a cryptocurrency broker based in New York. The company filed bankruptcy on July 5, 2022 under Chapter 11 case number 22-10945.

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