US federal authorities are reportedly contesting the recent court approval of the acquisition deal between Binance.US and Voyager Digital. The authorities are allegedly primarily concerned with the protections offered to the liquidators of the bankrupt company which would, as the SEC claimed in its previous objections, allow them to break securities laws.

US Authorities Contest Acquisition Deal Between Binance.US and Voyager Digital

Ever since it was unveiled in December, the $1 billion acquisition deal between Binance.US and Voyager digital has been faced with significant opposition from US regulators. Finally, on March 7th, the ordeal appeared to be over as the court approved the agreement and stated it would not allow the SEC to target liquidators in charge of Voyager’s restructuring.

Despite the development, US authorities are allegedly intent on blocking some aspects of the agreement. According to a report from Tuesday, the DoJ is opposed to the protections offered to the executors of the restructuring plan, and a hearing on the matter is scheduled for Wednesday.

Previously, the SEC claimed that the bankruptcy protections are too broad and would effectively enable Voyager to break securities laws while executing the bankruptcy-exit plan. The New York Attorney General also objected to the agreement in late February citing the fact that the bankrupt company was illegally serving customers in the state as it didn’t have required licenses, and alleging that the deal would be to the detriment of New York residents as it will take months for Binance.US to get the necessary approval.

Voyager’s Rocky Bankruptcy

While no bankruptcy can, by definition, be characterized as smooth sailing, Voyager Digital faced an uncharacteristic number of setbacks since filing for protection last summer. Despite the initial offers being deemed “not serious” by the company, its fortunes appeared to have changed by August when it was revealed that multiple companies were looking to acquire its assets.

As it turned out, the winning bid at the time came from FTX which was in the midst of its “buying spree” started after numerous companies filed for bankruptcy in the wake of the LUNA collapse in May. The $1.3 billion deal fell through after Sam Bankman-Fried’s company itself filed for bankruptcy in November.

Despite the fact that Voyager now appears closer than ever to finding and executing a way out of its bankruptcy, the fight is not yet won. While the SEC and New York regulators appear willing to relent when it comes to some of their objections, the bankrupt company is now, as has recently been reported, also facing an FTC investigation for “deceptive and unfair marketing of cryptocurrency to the public.”

This article originally appeared on The Tokenist

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