A dispute has arisen between the United States government and Binance.US, a cryptocurrency trading platform, in regards to the $1 billion bid of Binance.US for the assets of the bankrupt crypto lending firm, Voyager. The dispute has reached the New York judge, Jennifer Rearden, who has declared that the U.S. government has a “substantial case on the merits”. Earlier in March, U.S. Bankruptcy Judge Michael Wiles had approved the sale, but the decision has been put on hold while considering the government’s objections.

The government had submitted objections to the contract claiming that the contract effectively released Voyager from any breaches of tax or securities law. Judge Rearden had declared that the arguments by government had not been challenged and also said that “the Exculpation Clause appears to go further than the quasi-judicial immunity doctrine allows.”

Binance.US is a sister concern of the Binance global entity, whose CEO, Changpeng “CZ” Zhao has recently been sued by the Commodity Futures Trading Commission (CFTC) for offering unregistered crypto derivatives. CZ Zhao has refuted the claims by CFTC and said that there were an incomplete representation of facts in the claim. Judge Rearden has set an April 7 deadline for the government to submit a brief and a response from Voyager must be filed by April 18.

The delays in resolving the dispute may cost up to $10 million per month, thus a swift resolution of the dispute is expected to be sorted out soon. The U.S. government has evidently declared its “substantial case on the merits”, but it is yet to be seen whether or not those merits are upheld and regarded in the decision taken. If the contract is annulled or modified, it will have a significant bearing on breaking of different laws in regards to Voyager and Binance.US, respectively.



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