Voyager – Binance.US sale deal runs into new regulatory roadblock

ambcrypto.com:

The plan by insolvent lender Voyager Digital to sell its digital assets to cryptocurrency exchange Binance.US includes a clause that would preclude U.S. authorities from bringing legal action against anyone connected to the sale.

According to a motion filed by U.S. Trustee William Harrington and other government lawyers before a New York bankruptcy court, “the court improperly exceeded its statutory power” in authorizing the pardoning. In fact, they have asked for a two-week hold on the court’s approval of the transaction so that they could submit an appeal.

The clause, which the court authorized on March 7 after finding that 97% of Voyager customers supported the idea, was designed to shield those involved in the sale from being held personally accountable for its implementation.

Despite not objecting to other aspects of the proposed transaction, U.S. authorities claim the provision would make it more difficult for the government to “exercise its police and regulatory responsibilities.”

The decision was made in response to an appeal from the U.S. Trustee, a division of the Department of Justice in charge of bankruptcy cases. The division is concerned that the agreement would essentially exonerate Voyager and its employees from violations of securities or tax laws.

“The Court cannot tell the Government to speak now or forever hold its peace before Voyager and Binance.US are wed,” according to Damian Williams’ filing as U.S Attorney. Nothing in Bankruptcy Law allows courts to absolve parties from responsibility to the Government for actions taken in the past and in the future, it added. 

Williams argued that until appeals are resolved in higher courts, approval of the arrangement — or at least those portions that