US Officials Call for Delay in Binance.US Acquisition of Voyager Digital Assets

03/15/2023 06:57 • NFT Newsflash • 151 views

On March 15th, US officials wanted to remove a clause contained in Voyager Digital’s plan to sell its digital assets to Binance.US, which would prevent them from legally pursuing anyone involved in the sale. In a motion filed in the New York Bankruptcy Court on March 14th, the United States trustee, William Harrington, and other government lawyers argued that the court improperly exceeded its statutory powers in approving a pardon. They asked the court to defer approval of the sale for two weeks in order for them to file an appeal.

US officials want to remove the exemption clause protecting their executives from the proposed sale of Voyager assets

Analysis based on this information:

US officials are seeking to delay the acquisition of Voyager Digital’s digital assets by Binance.US. The officials filed a motion in the New York Bankruptcy Court on March 14th opposing a clause in the plan that would protect those involved in the sale from legal pursuit. The United States trustee, William Harrington and other government lawyers, argued that the court exceeded its powers in approving the clause.

The officials are requesting the court to defer approval of the sale for two weeks to file an appeal. While this motion puts a temporary hold on the acquisition, it does not necessarily halt it from proceeding once the issues are resolved. The clause being contested is known as an exculpation clause, which shields those involved in the sale from legal liability. It is common for businesses to include such clauses in their contracts to limit the risk of potential legal action.

However, the officials argue that this clause would hinder their ability to pursue any wrongdoing or negligence that may have occurred during the sale. They maintain that the court should not have approved the clause in the first place and that it goes beyond the court’s statutory powers to do so.

The acquisition of Voyager Digital’s assets by Binance.US would represent significant expansion for the cryptocurrency exchange. Binance is one of the largest cryptocurrency exchanges in the world, while Voyager Digital specializes in providing retail and institutional investors access to cryptocurrencies. The acquisition was originally proposed in February and was set to be completed by the end of March.

In conclusion, US officials are seeking to delay the acquisition of Voyager Digital’s assets by Binance.US due to a clause that would prevent legal action against those involved in the sale. The officials argue that the clause goes beyond the court’s powers and may hinder their ability to address any potential wrongdoing or negligence. The delay puts a hold on the acquisition, but it may still proceed once the issues are resolved. While the acquisition represents significant expansion for the two companies, it remains to be seen how this legal challenge will affect their plans moving forward.

Overall, the message highlights the importance of balancing legal protections with the need for accountability and transparency in business deals. It also underscores the potential challenges that arise when two companies with different business models and regulatory frameworks come together in a single transaction.

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