The arguments of the American government to justify its opposition to the project of Binance.US to acquire the bankrupt crypto lender Voyager Digital continue to strengthen after a judge decided to suspend the merger of the companies pending a government appeal.
The move marks a new twist in Voyager’s liquidation proceedings as another judge earlier this year cleared Binance’s US arm’s acquisition of Voyager, despite opposition from the US government.
Government opposition to merger had been called ‘vague’ by US bankruptcy judge Michael Wiles.
But with the U.S. District Judge’s latest decision Jennifer Reardenthe two companies will still have to wait for the government to prepare and file its appeal.
After consideration of the written submissions of all parties, as well as the conferences and oral arguments held in this matter, the government’s emergency motion is granted,” Judge Rearden wrote in thecourt order filed on March 27.
Earlier, a court filing in the case has show that a large majority of Voyager Digital account holders supported an acquisition by Binance.
According to the filing, 97% of account holders supported Binance’s plan, while only 3% opposed it.
However, that hasn’t stopped various US regulators from opposing the deal.
Among the government agencies that have challenged the agreement is the Securities and Exchange Commission (SEC), which in January this year requested more information about planned trading operations and said Binance had not provided enough details about its ability to meet its obligations.
Voyager Digital filed for Chapter 11 bankruptcy in July last year during a tumultuous time in the crypto markets.
After the bankruptcy, a bidding process had been organized, with FTX and Binance among the main bidders to take over the assets of Voyager Digital.
After FTX went bankrupt later that year, Binance was selected as the acquirer of Voyager.
Binance and Voyager then agreed to a deal valuing the bankrupt crypto lender at $1 billion.
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