- Binance.US approved to acquire of assets of bankrupt crypto lender Voyager Digital.
- Voyager Digital’s assets were sold to Binance.US for $1.022 billion, pending approval from creditors
- Court approval was secured for Binance.US to take over the assets of Voyager Digital, but regulatory hurdles remain.
Binance, one of the leading crypto exchanges in the world, has gained court approval to acquire the assets of bankrupt crypto lender Voyager Digital for approximately $1.022 billion. The deal, which still needs to be approved by Voyager’s creditors, will provide Binance with access to its existing customer base, advanced trading platform, and technology.
U.S. Bankruptcy Judge Michael Wiles approved the asset purchase agreement between Voyager and Binance on Tuesday. However, before the deal can be completed, Voyager’s creditors will still have to vote on the plan. If the agreement is approved, customers will recover 51% of the value of their deposits before Voyager’s bankruptcy filing. Notably, Voyager’s Committee of Unsecured Creditors (UCC) has already filed a statement supporting the plan.
According to reports, U.S. Bankruptcy Judge Michael Wiles has given the initial approval for the asset purchase agreement between Voyager and Binance US.
This acquisition represents a strategic move for Binance as it continues to expand its market presence in the United States. The company, which is already considered one of the leading crypto exchanges in the world, will now have access to Voyager’s existing customer base and its advanced trading platform and technology.
For Voyager, the acquisition offers a much-needed financial reprieve, as the company has been struggling financially and filed for bankruptcy earlier this year. By transferring its customers to Binance, the lender can ensure the safe return of their assets and provide them with access to a broader range of services offered by Binance.
Under the agreement, Voyager will receive a $20 million cash payment and transfer its customers to Binance. U.S. After that, customers can withdraw their assets from the exchange for the first time since July.
U.S. review and FTX allegations seek to stall or block the Binance deal with Voyager Digital.
The acquisition is, however, still subject to review by various regulatory bodies. Voyager seeks to expedite a U.S. national security review of its proposal to sell its assets to Binance, which could lead to the deal being blocked.
Joshua Sussberg, Voyager’s attorney, stated during Tuesday’s court hearing that Voyager is coordinating with Binance and their attorneys to address any concerns raised by the CFIUS, which reviews the national security implications of foreign investments in U.S. entities. The SEC filed a limited objection to the Binance. US-Voyager deal on January 4, arguing that the lender has failed to share the necessary information concerning the agreement.
“We are coordinating with Binance and their attorneys to not only handle this investigation but to file a request to move this process forward voluntarily,” Sussberg said.
FTX’s Alameda Research also criticized this deal despite being closely investigated. In court, Voyager claimed that the majority of the arguments were “hypocritical and boldface,” based on the conjecture that had not been confirmed:
“Raising objections to the disclosure statement based on unsubstantiated and unverified media reports while ignoring material information already made available to objectors is a blatant attempt to undermine the Binance.US transaction and attack Binance.US.”
The cryptocurrency exchange also explained its inclusion in the Alameda FTX Loan Facility. They persisted in saying that FTX’s bid to purchase Voyager was a desperate attempt to close the gaps left in their financial sheet due to their “apparent fraud.” According to the company, Voyager only agreed to the Alameda FTX loan based on misleading and fraudulent claims made by Alameda FTX.
In any event, Wiles disregarded the worries voiced by the groups, as mentioned earlier. The bankruptcy judge declared that after making a few minor wording adjustments, he would issue a final ruling. By doing this, Voyager can execute a contract with Binance and present a summary of the agreement and liquidation plan for approval to creditors.
Conclusion
Overall, the initial court approval of the Binance. The US-Voyager deal is a significant development for both companies and the crypto industry as a whole. It shows a growing interest in crypto and that traditional companies are looking to invest in and adopt cryptocurrency as a mainstream investment. The acquisition highlights the maturity of the crypto market as it moves towards more conventional business models and regulations. However, the deal is still subject to regulatory approvals, and it remains to be seen if it will ultimately be completed.
