Binance.US can now proceed with its plan to acquire the assets of bankrupt cryptocurrency lender Voyager Digital for $1.3 billion.
US judge approves Voyager deal
A US bankruptcy judge has approved Voyager Digital’s restructuring plan to sell its assets and customers to Binance.US in a $1.3 billion deal. The takeover deal already had one first nod court approval in January. At a hearing in New York City on Tuesday, U.S. Bankruptcy Judge Michael Wiles approved the restructuring plan, which is ultimately based on Binance.US acquiring the bankrupt organization. As part of the acquisition agreement, the latter will pay $20 million in cash to Voyager and acquire both the crypto assets and customer base of the defunct crypto lender.
Unauthorized investigations by government agencies
The court’s approval comes after the SEC expressed mild objections to this acquisition. At a hearing last week, SEC attorney William Uptegrove said the regulator’s investigators believe Binance.US operates an unregistered stock exchange. However, Judge Wiles was not convinced, claiming that the SEC did not support their claim with any good evidence. He also admonished them for waiting until the last minute to voice this concern.
Besides the SEC, another government body has scrutinized the deal. The Committee on Foreign Investment in the United States (CFIUS) has also scrutinized the deal as they investigate national security risks associated with foreign investment in Voyager.
Voyager can still retreat
There are some issues that need to be overcome before the sale goes through in full. While the approval means Voyager can begin transferring customer accounts to Binance, the crypto lender could still walk away from the deal. The company’s financial advisors have stated that the next four weeks will be spent focusing on Binance.US’s commitment to the acquisition, regulatory compliance and security of its clients’ deposits. Binance.US, which is based out of Palo Alto, has addressed these concerns by moving away from its international parent company Binance, which is led by Chinese-born and Singapore-based Changpeng Zhao.
Customers will soon be able to withdraw money
If Voyager decides to go ahead with the sale, its customers will hold accounts on the Binance.US platform and will finally be able to withdraw funds since their accounts were frozen last summer. The withdrawal halt was shortly followed by the cryptocurrency lender declaring Chapter 11 bankruptcy due to the TerraUSD contamination. The company estimates that the sale will allow customers to recover 73% of their deposits valued at the time of the bankruptcy filing.
Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.