On Tuesday, Voyager Digital, a bankrupt crypto lender, was approved by the court to offload its possessions and move its customers over to Binance.US for a transaction worth $1.3 billion. However, the company has yet to overcome further obstacles before the sale is finalized.
At a court hearing in New York, U.S. Bankruptcy Judge Michael Wiles accepted Voyager’s reorganization plan that centers on the Binance US takeover. Binance has consented to give $20 million in cash to Voyager and assume digital assets stored by Voyager customers. These digital assets were worth around $1.3 billion in February and constitute the majority of the transaction’s worth, according to Voyager.
Wiles accepted the reorganization plan despite disregarding the U. S. Securities and Exchange Commission’s ‘unclear’ complaint concerning the Binance procurement.
William Uptegrove, an attorney from the SEC, informed Wiles during a hearing last week that the SEC investigators thought Binance. US was running an unregulated securities exchange. However, Wiles didn’t believe it because the agency hadn’t provided any proof and had waited too late to raise any valid concern.
Wiles’ acceptance of Voyager’s proposal has enabled it to start transferring user accounts to Binance, however Voyager can still abandon the agreement. Its financial advisors declared in court on Friday that the firm needs up to four weeks to examine new queries concerning Binance. US’s dedication to the acquisition, Binance. US’s regulatory adherence, and the safety of Binance. US client deposits.
The Committee on Foreign Investment in the United States (CFIUS) is looking into the agreement as well, assessing any potential national security concerns that may arise from foreign investment in Voyager.
Binance. US, a company based in Palo Alto, has declared that it is completely separate from its overseas parent company Binance, which is owned by Changpeng Zhao who resides in both China and Singapore.
Once the agreement is finalized and customers of Voyager have established accounts with Binance. US, they will be able to take out their funds for the first time since Voyager blocked their accounts last summer.
Voyager declared bankruptcy in July, shortly after the collapse of TerraUSD and Luna caused a stir throughout the digital currency market.
Voyager believes customers will be able to get back around three-quarters of what they put in at the time of its bankruptcy declaration.
