Binance US Receives Initial Approval to Acquire Voyager Digital’s Assets: Report

Binance US Receives Initial Approval to Acquire Voyager Digital’s Assets: Report

Binance US's plan to acquire some of Voyager Digital's assets for $1.02 billion has moved a step closer as the bankrupt crypto lender has received initial court approval for its proposal.

U.S. District Judge Michael Wiles of the Bankruptcy Court for the Southern District of New York on January 10 approved Voyager to enter into a purchase agreement with the crypto exchange and seek creditor votes on the sale.

Uncertainty of the deal

According to the Reuters report, the deal will not become final until a future court hearing. Additionally, the confirmation hearing is scheduled for March and will also require approval from Voyager's creditors. If received, the sale will help Voyager customers recover 51% of crypto assets held prior to the bankruptcy filing.

But federal prosecutors are pursuing Binance, particularly because of its proximity to its now-defunct competitor FTX. As a result, Voyager is trying to speed up the deal's national security review, which could determine whether it can go ahead.

At Tuesday's hearing, Voyager attorney Joshua Sussberg confirmed that the lender is actively responding to national security concerns raised by the Committee on Foreign Investment in the United States (CFIUS).

The agency essentially reviews the national security impact of foreign investments in U.S. companies or operations. Sussberg also assured that Voyager will address any concerns that CFIUS may deem valid in opposing the transaction with Binance US.

“We are coordinating with Binance and their attorneys to not only process this request, but to voluntarily file a motion to advance this process.”

As part of the deal, Voyager will receive a $20 million cash payment and transfer customers to the Binance US crypto exchange. This makes it possible for customers to withdraw their crypto assets from the platform for the first time after bankruptcy.

If CFIUS blocks the transaction, Voyager will have to repay its customers with available crypto assets, in which case customers will receive fewer payouts.

opposition

The latest development comes a week after the US Securities and Exchange Commission (SEC) reportedly opposed Binance US's proposal to purchase Voyager assets. Central to the SEC's argument was that the crypto exchange had not adequately demonstrated that it had the necessary funds to complete the deal. The SEC added that Binance US also did not outline how it plans to secure the assets of Voyager customers.

Despite the rejection, Judge Glenn gave the deal a green light, although he noted that the commission will have the opportunity to object to the deal subject to final approval in the future.

.