By Larry Wright
Voyager is a crypto lender that is currently in the process of acquisition by Binance. However, US regulators have been aiming to block this acquisition by filing a lawsuit. The account holders of Voyager have been unable to access their funds since July when the bankruptcy application was first filed.
However, the presiding judge in the bankruptcy court has recently ruled in favor of the pending acquisition that legalized its $1 billion Binance exchange acquisition.
The legal precedent now is that judge has ruled against the stay of confirmation order by the US government. It means that Binance’s acquisition of Voyager will no longer be delayed until further notice.
The prosecution purported that Voyager was trying to protect illegal investment activities by taking the cover of bankruptcy. Regulators had claimed that the retail investors of Voyager may be involved in financial violations such as tax evasion, money laundering, and theft among others.
US Regulators Failed to Provide Proof of the Illegal Financial Activities
Since the US government has brought charges against Voyager’s Binance acquisition, the burden of proof lies with them. The regulators demanded that the court remove the provisions on Voyager that prevent them from taking any legal action against the US authorities.
However, the presiding judge issued comments in previous court sessions that the prosecutions did not provide enough proof to justify the stay on confirmation order demands.
Voyager has made another deal with Binance to nominate the new date of its merger with Binance.US. When the firm opted for bankruptcy, its investors were at risk of losing all their funds and other deals.
During one of the court sessions, the presiding judge in the bankruptcy court maintained that regulators should be mindful of the interests of the depositors who are still waiting for a verdict and access their lost funds as soon as possible. It seems that the court has ruled in favor of the confirmation order to safeguard the interest of individual investors.
The latest victory of Voyager in the Southern District Court of New York does not provide immunity to its stakeholders from other lawsuits. The regulators can still bring charges on account of tax evasion or any other legal violations with compelling evidence.
Judge Wiles has claimed that the US authorities have miscommunicated his ruling as a way to grant unwarranted impunity to Voyager.
He has maintained that his ruling cannot hinder any other financial injunction that regulators wish to bring against Voyager. He also explained that the cost of delay in this instance could lead to increasing pressure on the customers of debtors.
Therefore, it should be clear that the current court ruling is not an equivalent of diplomatic immunity for Voyager against any possible charges brought by regulators.