The bankruptcy judge for the Voyager Digital case has approved the cryptocurrency lender’s move to sell its assets to Binance for $1.3 billion. He also rejected the US SEC’s objection to the deal.
Bankrupt crypto lending company Voyager Digital has received approval from a US bankruptcy judge to sell its assets to Binance.US.
The exchange is buying the assets for $1.3 billion, although there is a possibility that the deal could fall through due to the U.S. Securities and Exchange Commission (SEC) objecting to it.
Voyager customers to recover cash on asset sales
U.S. bankruptcy judge Michael Wiles approved the tactic, which is part of Voyager’s financial restructuring plan. The judge rejected the SEC’s objection, deeming it vague. The agency’s lawyer said that Binance.US was not a registered stock exchange and therefore objected to the sale of the assets. Voyager will receive $20 million from Binance.US for the assets held by the clients of the bankrupt crypto lending company.
There are still a few hurdles to clear before the deal is finalized. The Committee on Foreign Investment in the United States (CFIUS) is investigating potential national security risks associated with the investment in Voyager. Binance.US has maintained that it operates completely independently from parent company Binance.
If the deal closes, Voyager customers will be able to withdraw money – the first time since their accounts were frozen last year. The company has explicitly stated that this would allow customers to recover up to 73% of the value.
Judge rejects SEC fine on lending platform
The approval comes as the case progresses, with numerous developments taking place in recent times. Judge Wiles also rejected the SEC’s attempts to fine Voyager executives if it decided to issue bankruptcy tokens to reimburse customers.
The SEC’s argument was that the bankruptcy token would represent an unregistered token offering. This offers some peace of mind to the cryptocurrency lender, who is fighting a very difficult case.
Bankruptcy cases are on the rise
Multiple other developments are making headlines regarding Voyager’s bankruptcy case. The lender has sent $121 million in crypto assets to various exchanges since early February. It also received $150 million in USDC, possibly from cryptocurrency sales.
Meanwhile, former FTX CEO Sam Bankman-Fried has resisted calls for testimony in the Voyager case. FTX and Alameda Research are trying to recover $446 million in loan repayments from Voyager.
BeInCrypto has reached out to the company or individual involved in the story to get an official statement on recent developments, but it has not yet heard back.