Key points
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Voyager Digital, a bankrupt cryptocurrency lending firm, is pressing for the legal dispute between it and Binance.US to be settled by April 13th.
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Creditors of the firm stand to lose $100 million if the deal is not concluded by the said date.
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The US government is suing Binance for offering crypto trading services without proper registration.
Voyager Urges Swift Resolution of Binance.US Conflict
Cryptocurrency lending firm Voyager Digital is pushing for the legal battle between it and Binance.US to be settled by April 13th, as creditors stand to lose $100 million if the conflict is not solved. This is according to legal documents filed on Monday night.
In December, Binance.US and Voyager Digital agreed to a $1 billion acquisition deal. This deal was approved by US Bankruptcy Judge Michael E. Wiles at the Southern District of New York court last month. However, the US government lawyers claim that the detailed terms of the contract would effectively absolve the company from breaches of tax or securities law.
District Judge Jennifer Rearden put the deal on hold last week while the issue was settled. Voyager Digital now believes that the ongoing legal delays could see Binance.US pull out of the deal, as it can back out of the agreement if it is not concluded within four months.
Voyager Digital’s creditors wrote;
“Consummation of the plan by April 13 is necessary to preserve massive creditor value. The evidence is uncontroverted that, if the deal is not completed, Voyager’s creditors will lose roughly $100 million in value.”
The firm stated in another filing to the U.S. Court of Appeals for the Second Circuit that there would be a price tag of $10 million per month if the delay continues. If that happens, over a million of its customers would not have access to their savings.
Binance.US Could Pull Out of Deal
At the same time, Binance, the parent company of Binance.US and its CEO, Changpeng Zhao (CZ), is facing another lawsuit in the United States. The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and CZ last week, accusing the exchange of offering crypto trading services of commodities (Bitcoin, Ether, Binance USD, Tether and Litecoin), without proper registration.
CZ rejected the allegations made against Binance and himself. He called CFTC’s claims incomplete recitation of facts.
On March 3, CZ tweeted that Binance.US could pull out of the deal to acquire Voyager Digital due to the legal delays.
We are still in support of the deal and helping returning funds to users as quickly as possible, if allowed to do so. 🙏
— CZ 🔶 Binance (@cz_binance) March 3, 2023
