- This comes on the heels of a lawsuit filed against Binance and its founder CZ by CFTC.
- Cryptocurrency lender Voyager Digital filed for bankruptcy due to huge withdrawals.
Bankrupt cryptocurrency lender Voyager Digital had its $1.3 billion asset sale to Binance U.S. put on hold by a federal court on Monday, March 27. This comes on the heels of a lawsuit filed against Binance and its founder CZ by the Commodity Futures Trading Commission (CFTC) for violating federal derivatives laws.
It also occurs within a month of a judge allowing the parties to go through with the agreement. The most recent turn of events indicates that US authorities will investigate the deal’s legality in greater detail.
The Department of Justice (DOJ), the United States Attorney’s Office for the Southern District of New York, and the United States Trustee’s Office all appealed the court’s March 1 decision to allow the sale of Voyager Assets to Binance U.S.
Voyagers Contention Rejected
They said the safeguards may act as a seal of approval for digital currencies that are really unregistered securities. As an added bonus, it could legitimize deals that break US securities laws. On Monday, US District Judge Jennifer Rearden in Manhattan rejected Voyager’s contention that a delay may force Binance U.S. to walk out of the agreement altogether and ordered putting the sale on hold.
With the $40 billion collapse of the Terra ecosystem in July 2022, cryptocurrency lender Voyager Digital filed for bankruptcy due to huge withdrawals. Voyager has been aggressively pursuing assets sale to aid its clients in recovering their funds.
Last week, Voyager filed a legal brief arguing that pending Department of Justice appeals put the firm and its clients in uncertainty. Recently, Binance has been besieged by many regulatory efforts. On Monday, the prospect of a legal fight with the CFTC was a big setback.
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