Binance.US Gets Green Signal to Acquire Voyager From US Court

Judge Michael Wiles, however, ruled that Voyager must seek approval from its creditors to proceed with the Binance.US deal.

Binance CEO is excited after Judge Michale Wiles approved Voyager aquisition.
  • Voyager Digital has received initial court approval for its $1.02 billion acquisition deal with Binance.US.
  • However, Judge Michael Wiles ruled that creditors must approve Voyager’s move.
  • In an earlier filing, the SEC questioned the lack of adequate information about Bianance.US’s acquisition of Voyager.
  • The bankruptcy court approval came amid a CFIUS investigation into Voyager.

Cryptocurrency lending platform Voyager Digital has received initial court approval for the $1.02 billion acquisition deal of its assets involving Binance.US. The United States Bankruptcy Court for the Southern District of New York gave Voyaver the green light for the deal, according to a report by Reuters.

However, Judge Michael Wiles ruled that the cryptocurrency lender must seek a go-ahead from its creditor. Despite the approval, Reuters reported that the acquisition won’t manifest until another court hearing.

Sponsored

The deal was halted after the United States Securities and Exchange Commission (SEC) filed a limited objection against the deal.

In a filing, the SEC questioned the lack of proper information about the acquisition and asked Binance.US to provide how it has the financial capacity to carry out a deal of such magnitude. 

Further, the SEC raised concerns about the safety of users’ assets under the custody of the U.S. organ of Binance. The concerns emanated about the mismanagement of users’ funds by the bankrupt cryptocurrency exchange, FTX.

Controversies Surrounding Voyager

The recent approval by the bankruptcy court surfaced amid a national security inquest about Voyager. Recall that last December, Committee on Foreign Investment in the United States (CFIUS) filed a court notice revealing that any transactions by Voyager might incur a review from its end. Therefore, resulting in the blockage or delay of the Binance.US deal. 

Sponsored

The organization is responsible for detecting threats to national security posed by foreign investments or takeovers involving U.S. companies. 

Presently, the committee is looking into the deal to determine if it poses any threat to the national security of the U.S.  If the CFIUS sees justification for its concerns, it has the jurisdictional power to block the takeover deal. 

The attorney for Voyager, Joshua Sussberg, will address any issue from CFIUS that can obstruct the deal’s completion. In a court hearing, the attorney responded to questions from the committee to clarify the deal. 

As Sussberg revealed, Voyager is working with Binance and its legal team to attend to the investigation and request that the acquisition goes forward.

On the Flipside

  • Initially, Voyager was planning to sell its assets to FTX. But the deal collapsed when FTX went bankrupt in November following a spike in customer withdrawals and fraud allegations.

Why You Should Care

Voyager’s acquisition by Binance.US is facing uncertainty following the SEC’s opposition. Nevertheless, the recent update could ease tensions for Binance.US as it moves to acquire Voyager Digital.

 

You may also like:

SEC Opposes Voyager’s Acquisition by Binance.US – Here Are the Reasons

Binance.US to Buy Bankrupt Crypto Lender Voyager’s Assets for $1.02 Billion

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Soumen Datta

Soumen has been a dedicated researcher and writer in the field of cryptocurrencies for the last few years. Even though Indian crypto regulations are still unclear, he believes that India will continue to innovate in the years to come. He loves to play his guitar and sing along in his spare time. He holds bags mostly in BTC, ETH, BNB, MATIC, ADA.