Bankrupt crypto lender, Voyager Digital, has been granted court approval to sell its assets and transfer its customers to Binance.US for $1.3 billion. The restructuring plan, which centers around the acquisition, was approved by US Bankruptcy Judge Michael Wiles at a hearing in New York. Binance has agreed to pay $20 million in cash to Voyager and take on crypto assets deposited by Voyager customers, accounting for the bulk of the deal’s valuation. However, there are still hurdles to overcome before the sale becomes final.
SEC’s Objection Overruled
Judge Wiles approved the plan despite the Securities and Exchange Commission’s vague objection to the acquisition, which investigators believe to be operating an unregistered securities exchange. However, the agency failed to provide evidence, and Wiles was unpersuaded, leading him to overrule their objection.
Also Read: Voyager Defends Binance Acquisition, Calls FTX Opposition Hypocritical
The deal still faces additional scrutiny from the Committee on Foreign Investment in the United States (CFIUS), which is investigating national security risks associated with foreign investment in Voyager. Binance.US has stated that it is fully independent of its international parent company Binance.
Voyager may still walk away from the deal, and its financial advisors have said that they need up to four weeks to review Binance.US’s commitment to the acquisition, regulatory compliance, and the security of Binance.US customer deposits.
Recovery for Customers
If the deal goes through, Voyager’s customers will recover 73% of the value of their deposits at the time of Voyager’s bankruptcy filing. Once the deal is completed, and Voyager’s customers have Binance.US accounts in place, they will be able to make withdrawals for the first time since Voyager froze their accounts last summer.
