The United States District Court for the Southern District of New York Judge Michael Wiles dismisses the government’s stay motion on the Binance-Voyager deal.
The government filed a stay motion after Binance.US won the court approval to buy Voyager’s assets for $1.3 Billion.
The filing notes that bankruptcy courts don’t have the “power to release and immunize from suit debtors’ or non-debtors conduct that falls within the Government’s police and regulatory powers.”
The motion noted that the court order is immunizing fraud, theft, or tax avoidance. Judge Michael Wiles reviewed the appeal stating that the government is not entitled to a stay.
Judge Wiles denied the government’s accusations that he granted “third party releases” and stated that Binance.US would distribute crypto assets to customers as a distribution agent of Voyager Digital.
Meanwhile, the court noted the parties have consented to a stay till March 20, 2023, but a further extension is impossible.
“The public interest also favors the timely resolution of bankruptcy cases. As noted above, a stay would adversely affect many thousands of customers,” Judge Wiles added.
Also Read: US Judge Disappointed with US SEC for Voyager – Binance Deal Demure
