Court grants Voyager initial approval for $1B Binance USA Deal.
To become final, the deal will give Voyager users roughly half of their assets back. However, it still must pass another court hearing.
Voyager, a defunct crypto broker, has received initial court approval to sell its assets to Binance.US in an agreement worth approximately $1 billion.
New York’s U.S. Bankruptcy Judge Michael Wiles granted Voyager permission for an asset purchase agreement to be entered into with the crypto exchange. Voyager was also allowed to vote among its creditors regarding the sale, according to the court filing.
The deal will not be finalized until a court hearing takes place on March 2, or shortly thereafter.
Voyager customers who have been unable to access their funds since July 2022 will receive 51% back if the deal is completed.
Voyager filed for bankruptcy in July because of the “crypto winter”, and the exposure to Terra, now in collapse. FTX was able to bid for the remaining assets of the firm, but Voyager filed for bankruptcy in July. FTX went on to become a prominent bankruptcy. Voyager’s lawyers stated at a hearing that there would be no transaction with FTX after the collapse of the exchange.
We are still waiting for key US inflation data Thursday
Binance.US was the eventual winner of the bid in December 2012.
This news comes after the planned acquisition was criticized by both Alameda Research and the SEC.
Alameda posted a file last week in which he criticized the $1 billion acquisition deal, saying that it “ignores fundamental requirements of the Bankruptcy Act and its protections.”
Voyager filed a response accusing Alameda of “hypocrisy” and “chutzpah at her best.”
Court Grants Voyager Initial Approval for $1B Binance US Deal
► https://t.co/KoXRuOZ9pq https://t.co/KoXRuOZ9pq— Decrypt ???? (@decryptmedia) January 11, 2023
The SEC also questioned Binance’s ability “to consummate a transaction such as this magnitude” and raised concerns about “how the Debtors intend to secure customer assets.”
This is not just financial concern that could delay the sale.
The U.S. Committee on Foreign Investment in the United States, a public body that regulates and reviews foreign investment in the United States, published a list of questions in December. A court filing reserved the right to block the deal if it posed enough danger to U.S. security.
Joshua Sussberg, Voyager attorney, stated in a separate filing that it was working with the CFIUS to resolve any issues. He claimed that if the CFIUS blocks the Binance deal, Voyager will receive a lower payout.
