Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance – US
- Federal Judge Rearden, on March 27, granted the government’s request by putting a hold on the sale.
- Voyager’s credit committee stated that it would continue to “aggressively oppose” the government’s efforts to stop the billion-dollar sale.
- Binance CEO, Changpeng Zhao, stated that CFTC’s complaint contained an incomplete recitation of facts.
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
Voyager creditors need to wait longer
Voyager Digitial, the company which filed for Chapter 11 bankruptcy last year, has been attempting to get out of this situation by selling its assets to Binance.US. The American arm of the world’s biggest cryptocurrency exchange wants to seal the deal with Voyager for $1.1 billion. However, the deal has not been able to go through for a while now.
The bankrupt platform’s sale was halted by US District Judge, Jennifer Rearden, on March 27. The decision came into effect after the court granted the United States government’s request to put the acquisition on hold. The decision, as noted in the court papers, is yet to be explained by the court.
This development once again put the pressure back on Voyager as it has been attempting to pay back its customers. Back in February, the US financial regulators had opposed the deal, which was rejected by Judge Michael Wiles. The decision came after Voyager customers approved the restructuring plans, allowing creditors to claim about 72% of their funds.
The billion-dollar sale with Binance.US would be felicitating the payout to awaiting customers. The Voyager Official Committee of Unsecured Creditors addresses the halt stating,
“We will continue to aggressively oppose the Government’s efforts and will provide further updates as they become available.”
Changpeng Zhao says CFTC lacks facts
Earlier in the day, the CFTC filed charges against Binance and its Chief Executive Officer (CEO), alleging a violation of federal laws. The regulatory body accused the crypto exchange of running an illegal derivatives exchange and also failing to register in the United States.
Responding to these charges, CEO Changpeng Zhao (CZ) stated that the filing was “unexpected and disappointing” as the exchange had been cooperating with CFTC for over two years. Zhao added,
“Upon an initial review, the complaint appears to contain an incomplete recitation of facts, and we do not agree with the characterization of many of the issues alleged in the complaint.”
Zhao went on to state that Binance uses the most comprehensive systems in the industry and that it has been cooperating with law enforcement agencies for a long period. The executive further noted that Binance had helped law enforcement seize about $125 million in funds last year and another $160 million this year as well.
What further action the exchange would take in response to the charges was not detailed by the CEO.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
