James Atkins
Editor
Editor
Key highlights
Voyager is urging Binance.US to work expeditiously to reach a resolution and wants the dispute settled by April 13 in order for the acquisition to go through without disruption. The potential delay could result in creditors of Voyager losing up to one million dollars, so it is essential that this legal issue be resolved as soon as possible. Before facing legal action in the United States, Binance.US and Voyager Digital had agreed on a one billion dollars acquisition deal.
Binance.US is currently being sued by the Commodity Futures Trading Commission for alleged inadequate compliance measures and trading practices. Which has raised doubts about Binance’s ability to meet the acquisition agreement timeline set forth by Voyager. In the previous month, the US Bankruptcy Judge for the Southern District of New York, Michael E. Wiles. Rejected the request made by the US government to stop Binance.US’ takeover of Voyager.
The judge’s decision was based on the possible negative effects the acquisition would have on the customers of the bankrupt cryptocurrency lender. Voyager is disappointed that the legal dispute between Binance.US and CFTC has impacted their acquisition timeline. Voyager has requested that the parties involved in the dispute come to a resolution before April 13th in order for them to move forward with their proposal.
In a statement, Voyager says:
“It is crucial to finalize the plan by April 13 in order to protect a significant amount of value for the creditors of Voyager. The available evidence strongly suggests that if the agreement is not executed, the creditors stand to lose approximately $100 million in value.”
In a filing to the U.S. Court of Appeals for the Second Circuit, Voyager Digital explains that a delay would cost them $10 million per month. And over a million of their customers would be unable to access their savings.
According to the agreement terms agreed upon in December and authorized by Judge Michael Wiles in March. Binance.US has the option to cancel the deal if it is not completed within four months. The US government lawyers maintain that the specific provisions outlined in the contract would excuse the company from potential violations of tax or securities laws.
As a result, District Judge Jennifer Rearden put the deal on hold last week until the issue is resolved. The deadline for the deal is April 13 and both Voyager and Binance.US are in a race against the clock to come to an agreement. Failing to do so would result in Binance.US pulling out of the deal. Leaving Voyager unable to access their customers’ funds and causing major disruptions in their operations.
Binance and its CEO, Changpeng Zhao (CZ), are facing another lawsuit in the United States at the same time. As the ongoing legal battle involving Binance and Binance.US. The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Zhao for his involvement in a cryptocurrency exchange, citing alleged violations of U.S. securities laws. CZ denied the accusations against Binance and himself, stating that the CFTC’s claims were not a complete representation of the facts.
On March 3, CZ tweeted that Binance.US might withdraw from the Voyager Digital acquisition deal due to legal delays.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
