- Binance.US gets approval to seize $1.3 billion worth of assets from Voyager
- Despite the SEC’s attempt to halt Binance.US from committing any further action, US Judge Michael Wiles saw the Binance.US deal to be beneficial for affected customers
- Voyager’s investment banker said the deal will add $100 million for its customers
Following a ruling from the bankruptcy court in its favor, Binance.US is pushing ahead with plans to take control of $1.3 billion worth of assets from the embattled crypto lender Voyager. Judge Michael Wiles is preparing to sign off on the sale and the corresponding $20 million payout plan for customers.
The US Securities and Exchange Commission (SEC) attempted to stop the transaction at the eleventh hour, claiming some parts may run afoul of securities laws, but their efforts were in vain. Wiles declared he could not ‘put the entire case into an indeterminate deep freeze.’
Voyager initially believed customers could receive up to half of their due from assets. Still, lawyer Christine A. Okike speculated that it would be closer to 73% based on recent crypto prices during a hearing on March 2.
Peter M. Aronoff, a Department of Justice lawyer, informed the hearing that an appeal to Judge Wiles’ decision might be considered.
A staggering 97% of 61,300 Voyager account holders were found to support Binance.US’s restructuring plan as per a February 28 filing. Judge Wiles additionally stated that no US agency, including the SEC, would be allowed to take action against Voyager executives over their issuance of a potential bankruptcy token.
The trading platform will have several weeks to determine if they should proceed with the Binance. The US sells or liquidates assets independently and distributes proceeds directly to Voyager customers. This depends on how problematic Voyager considers ongoing investigations concerning Binance US and US federal authorities.
Brian Tichenor — Voyager’s lead investment banker — argued that going through with Binance’s offer would provide an additional $100 million for customers versus liquidating assets themselves – a sign of how beneficial this deal is for all involved parties.
SEC’s Previous Actions on Binance.US and Voyager
On March 6, a US Securities and Exchange staff member stated their assumptions that the sale of VGX tokens by Voyager Digital breached federal securities laws, as well as Binance.US operating in the US without registration as a securities exchange. This opinion was offered at a bankruptcy hearing intended to decide Voyager’s fate after Judge Michael Wiles of the Southern District Bankruptcy Court in New York asked for guidance from the SEC on their objection to Voyager’s sale.
William Uptegrove, SENIOR trial attorney for the SEC, noted that such views might not reflect those of the five commissioners at the head of the agency, and any potential enforcement actions have yet to be made official. The commission itself has yet to reach a verdict on either issue.
