U.S. DOJ Appeals New York Judge’s Decision to Approve Voyager’s Sale to Binance.US

Linh Nguyen — Fri, 10 Mar 2023 07:59:57 +0000

@ Crypto Insider

The appeal comes just one day after Judge Michael Wiles gave Voyager Digital the go-ahead to sell its assets to Binance.US.

The U.S. Department of Justice (DOJ) filed an appeal late Thursday evening challenging a New York bankruptcy judge’s decision to allow Binance.US’s billion-dollar plan to acquire the assets of bankrupt crypto lender Voyager Digital.

The appeal, which was filed by the U.S. Trustee’s Office – an arm of the DOJ responsible for overseeing bankruptcies – comes just one day after Judge Michael Wiles approved the deal after a contentious, four-day-long marathon hearing.

Regulators, including the U.S. Securities and Exchange Commission (SEC) and various state regulators have been staunchly opposed to the proposed deal. Last month, the SEC filed an objection to the purchase of Voyager, arguing that Binance.US may be violating federal securities laws by operating an unregistered securities exchange in the U.S.

However, Judge Wiles appeared to be unmoved by the SEC’s concerns, telling the lawyers present at the hearing that the Bankruptcy Code “doesn’t contemplate an endless period of time.”

“Things have to be done. We have creditors who are waiting and who in the midst of all of this uncertainty have no access to property in which they’ve invested, in some cases, their life savings, so we have to take some kind of action,” Wiles said. “We have to do something.”

Under the proposed sale to Binance.US, Voyager’s customers would see an estimated 73% recovery. The plan, which was assembled after FTX – Voyager’s previous top bidder – filed for its own bankruptcy in November, was supported by 97% of Voyager’s creditors.

If Voyager decides not to go through with the current plan to sell itself to Binance.US – or if regulators are successful in blocking the sale – another option is for the bankrupt lender to liquidate itself, which would likely result in much smaller returns for creditors.

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US Extradites Alleged Crypto Money Launderer From Netherlands

Linh Nguyen — Thu, 18 Aug 2022 08:38:49 +0000

@ Crypto Insider

Denis Mihaqlovic Dubnikov is scheduled to face a five-day jury trial beginning on Oct. 4

The United States has extradited an alleged cryptocurrency money launderer from the Netherlands, according to a Department of Justice press release.

Denis Mihaqloviv Dubnikov, 29, a Russian citizen, made an initial appearance in federal court in Portland, Oregon on Wednesday, and a five-day jury trial is scheduled to begin on Oct. 4. If convicted, Dubnikov faces a maximum sentence of 20 years in prison, the DOJ release said.

The DOJ cites court documents that allege Dubnikov and his accomplices laundered ransom payments extracted from victims of Ryuk ransomware attacks.

“After receiving ransom payments, Ryuk actors, Dubnikov and his co-conspirators, and others involved in the scheme, allegedly engaged in various financial transactions, including international financial transactions, to conceal the nature, source, location, ownership, and control of the ransom proceeds,” the DOJ release said.

Ryuk is a ransomware software that has targeted thousands of victims worldwide.

Dubnikov is alleged to have laundered more than $400,000 in Ryuk ransom proceeds. “Those involved in the conspiracy laundered at least $70 million in ransom proceeds,” the DOJ alleges.

Multiple agencies are working on the case. The Justice Department’s Office of International Affairs handled Dubnikov’s extradition, coordinating efforts with the department’s Ransomware and Digital Extortion Task Force created to combat digital extortion attacks. The FBI’s Portland Field Office is investigating the case.

The post US Extradites Alleged Crypto Money Launderer From Netherlands appeared first on Crypto Insider.

DOJ Archives - Crypto Insider

U.S. DOJ Appeals New York Judge’s Decision to Approve Voyager’s Sale to Binance.US

The appeal comes just one day after Judge Michael Wiles gave Voyager Digital the go-ahead to sell its assets to Binance.US.

US Extradites Alleged Crypto Money Launderer From Netherlands

Denis Mihaqlovic Dubnikov is scheduled to face a five-day jury trial beginning on Oct. 4