By Larry Wright
Voyager is a crypto brokerage firm that operates across more than a dozen crypto exchanges. The firm recently filed for bankruptcy on account of its exposure to the losses sustained by Three Arrow Capital. However, the firm got a bailout from Binance.US, which decided to acquire its distressed assets.
The move does not seem to sit right with the US government. According to the latest reports, the Department of Justice Trustee Office has filed an appeal to block the acquisition. It is interesting to note that the request for acquisition by Binance.US has already been granted a green light from the New York bankruptcy court under the supervision of judge Michael Wiles.
Judge Wiles has commented on the matter, asserting his decision and the causation behind it. He claimed that due to the bankruptcy, many creditors have lost their investments and waiting to make up for the losses. Therefore, he claimed that the court decided to expedite the process by ruling in favour.
Recently, Binance.US also got some heat from the Securities and Exchange Commission on account of its stablecoin project. SEC brought an injunction against Paxos to bar it from listing BUSD. BUSD is a stablecoin project that is native to Binance Smart Chain or BSC. BSC is a blockchain entity that has been developed by the Binance exchange.
US Regulators Question Voyager Acquisition
The Bankruptcy court is not the only regulator in the US that has opposed the reaction from the DOJ on the matter of the Voyager acquisition. Some other regulatory agencies, such as the Securities and Exchange Commission, have also filed their objection on the matter last month.
SEC, however, has proceeded to file its objection on the matter of unregistered securities operating out of an unregistered exchange.
Commenting on the matter, Binance exchange and some other crypto organizations have expressed increasing hostility from the US government towards cryptocurrencies. On the other hand, some investors opine that the current situation may stifle tech innovation and setback US as the world’s leading authority in crypto development.