The acquisition of bankrupted cryptocurrency lender Voyager Digital by crypto exchange Binance US has been put on hold. New York District Judge Jennifer Rearden made the ruling to halt the sale on Friday in the wake of objections from the U.S. government.
The details of the decision have not been made public at the time of the writing, but Rearden’s ruling stated that the U.S. government has a “substantial case on the merits” in its attempts to nullify the sale. The federal judge promised to make a quick decision in order to avoid any delays.
Shortly after the ruling was announced, the Official Committee of Unsecured Creditors of Voyager Digital stated that they “will continue to aggressively oppose the Government’s efforts.”
Voyager Digital folded in July after the company met with financial troubles that were caused by the crash of the crypto market. The company was also affected by the unpaid loan of $650 million it issued to bankrupted crypto fund Three Arrows Capital.
After Voyager filed for Chapter 11, the crypto exchange and crypto hedge fund made a deal to acquire the company. However, FTX itself went bankrupt shortly after, allowing Binance US to step in. U.S. Bankruptcy Judge Michael Wiles already approved Voyager’s sale to Binance US for $1 billion back in March.