Binance.US receives a nod from a US bankruptcy Judge to purchase Voyager assets.
The court has allowed bankrupt crypto lender, Voyager Digital, to sell its assets worth over $1B to Binance.US.
A US bankruptcy Judge, Michael Wiles, gave the go-ahead nod on March 7th, 2023. The approval came after four days of testimony hearings from the US Securities and Exchange Commission (SEC) and Voyager.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)
The sale by Voyager is part of its restructuring plan to bounce back from its financial troubles. Voyager will get liquid cash worth $20M first, while other payments will be distributed in crypto assets from Binance.US. According to the bankrupt company, “a large part of the Binance.US deal valuation was customers’ crypto holdings worth $1.3B last month.”
When the news hit the crypto space Voyager’s native token, VGX, surged in price by 32.9% in 4 hours, from $0.35 to $0.50. It finally settled at $0.47 that same day.
Judge Wiles, commenting on the approval to allow Binance.US to buy Voyager’s assets, noted:
The approval will allow Voyager to close the sale with Binance.US. Voyager will pay back the customers impacted by its bankruptcy and, in turn, get 73% of the money they are owed.
At a hearing last week, William Uptegrove, a US SEC attorney, told Wiles that Binance.US runs illegal security exchanges. However, Wiles said, “the agency couldn’t prove that because they had no evidence.”
Hence, the attorney did not persuade the judge. He also mentioned that the SEC should have raised the concern earlier if it was substantial enough.
When talking about the deal, Binance.US highlighted that “buying Voyager will expand Binance.US services and solidify its place as a leading exchange in the ever-competitive crypto industry.”
The news about Binance.US winning the bid for Voyager Digital assets broke at the end of December 2022.
