Speculation has been going wild since the US Department of Justice (DOJ) filed an appeal to challenge a bankruptcy court judge’s decision allowing Binance.US to acquire the assets of bankrupt crypto lender Voyager Digital. The move came just one day after the bankruptcy court gave the go-ahead to the proposed deal with creditors hopeful to receive a 73% return on their investments.

The appeal has raised eyebrows, as the SEC and various state regulators have long been opposed to the proposed deal. At the four-day long marathon hearing, Judge Michael Wiles from the Southern District Court in New York appeared to be unmoved by the SEC’s concerns, saying, “We have to do something.”

With the proposed deal, Voyager’s customers would see an estimated 73% recovery. The plan has been supported by 97% of Voyager’s creditors, with an alternative being a liquidation of Voyager, likely resulting in much smaller returns.

Time will tell where the winds will take us, but the future certainly looks uncertain. Whether people can expect a return on their investments or if their life savings will be lost to nothing, the outcome of this case is of great interest to all.

Key Points

  • The U.S. Department of Justice has appealed a ruling that would allow Binance.US to acquire the assets of bankrupt crypto lender Voyager Digital.
  • Regulators have voiced strong opposition to the proposed deal, while the creditors supporting the plan hope to receive a 73% recovery.
  • At the four-day long marathon hearing, Judge Michael Wiles from the Southern District Court in New York appeared to be unmoved by the SEC’s concerns.
  • An alternative to the proposed sale to Binance.US would be a liquidation of Voyager, likely resulting in much smaller returns.

tl;dr

The U.S. Department of Justice has appealed a bankruptcy court judge’s ruling to allow Binance.US to acquire the assets of bankrupt crypto lender Voyager Digital. Creditors are hoping for a 73% return, but regulators and the SEC have voiced strong opposition to the proposed deal. There is also the option of liquidating Voyager, but this would likely result in much smaller returns.