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US Officials Challenge Legal Protections for Voyager Execs in Binance.US Sale

• U.S. officials have filed a motion to delay the approval of legal protections given to those involved in Voyager Digital’s sale to Binance.US
• The DOJ argues that the court exceeded its authority in granting such pardons
• A hearing is set for March 15, and creditors are expected to recover 73% of their funds

US Officials Appeal Legal Protections for Voyager Executives in Binance.US Sale

Court Approved Plan

On March 7, a New York bankruptcy court approved a plan from bankrupt lender Voyager Digital to sell its digital assets to crypto exchange Binance.US, which included a provision protecting those involved in carrying out the sale from being held personally liable. 97% of Voyager customers favored the plan according to a February 28 filing.

DOJ Motion

However, on March 14, US Trustee William Harrington and other government attorneys filed a motion with the court arguing that it improperly exceeded its statutory authority in approving the pardons and requested that the court’s approval of the sale be delayed for two weeks so they can file an appeal.

SEC Objection

On March 6, The U.S Securities and Exchange Commission also objected to the plan due to what they saw as an unregistered security offering and an unregulated securities exchange by Binance.US

Upcoming Hearing

A hearing on this issue is set for March 15 at 2:00 pm Eastern Time.

Expected Recovery Rate