United States officials want to remove a provision included in bankrupt lender Voyager Digital\u2019s plan to sell its digital assets to crypto exchange Binance.US that would prevent them from legally pursuing anyone involved with the sale.\u00a0<\/p>\n
In a motion filed on March 14 in a New York Bankruptcy Court, U.S. Trustee William Harrington and other government attorneys argued: \u201cthe court improperly exceeded its statutory authority” in approving a the pardoning.<\/p>\n
They requested the court’s approval of the sale be delayed for two weeks to allow them to file an appeal.<\/p>\n
The provision protects those involved in carrying out the sale from being held personally liable for its implementation, which the court approved on March 7 after it was found that 97% of Voyager customers favored the plan, according to a Feb. 28 filing.<\/p>\n
While U.S. officials are not objecting to other parts of the proposed sale, they argue the provision would impede the government’s \u201cability to enforce its police and regulatory powers.\u201d<\/p>\n
On March 6 the Securities and Exchange Commission (SEC) also objected to the plan, particularly the \u201cextraordinary\u201d and \u201chighly improper\u201d exculpation provision, arguing the repayment token would constitute an unregistered security offering and that Binance.US is operating an unregulated securities exchange.<\/p>\n