Binance Us receives the first approval for the acquisition of Voyager Digital: Report

Binance Us receives the first approval for the acquisition of Voyager Digital: Report

The plan of Binance Us to acquire some of the Voyager's assets digitally for $ 1.02 billion has come closer because the bankruptcy has received the first judicial approval for his proposal.

The US district judge Michael Wiles from the bankruptcy court for the southern district of New York approved Voyager on January 10th to work out a purchase contract with the crypto exchange and to obtain creditors about the sale.

uncertainty of the deal

According to the Reuters report, the deal only becomes final at a future court hearing. In addition, the hearing for confirmation for March is planned and also requires the consent of the creditors of Voyager. If the sale has been received, the sale will help the Voyager customer to receive 51 % of the crypto assets held before the bankruptcy application.

But the federal prosecutor pursues Binance, especially because of its proximity to its now no longer existing competitor FTX. As a result, Voyager tries to accelerate the review of the national security of the deal, which could decide whether it can be started.

At the hearing on Tuesday, Voyager lawyer Joshua Sussberg confirmed that the lender was actively responding to national security concerns, which were brought up by the committee for foreign investments in the United States (CFIUS).

The authority essentially checks the effects of foreign investments in US companies or companies on national security. Sussberg also assured that Voyager will clear all the concerns that CFIUS could consider if he speaks against the transaction with Binance US.

"We coordinate with Binance and your lawyers in order not only to edit this request, but also voluntarily submit an application to advance this process."

As part of the deal, Voyager receives a cash payment of $ 20 million and transfers customers to the crypto exchange from Binance Us. This enables customers to remove their crypto assets from the platform for the first time after bankruptcy.

When CFIUS blocks the transaction, Voyager has to repay its customers with available crypto-assets, in this case customers receive fewer payments.

opposition

The latest development comes a week after the US stock exchange supervisory authority (SEC) has reportedly spoken out against the proposal of Binance Us to buy voyager assets. The focus of the argument of the SEC was that the crypto exchange did not sufficiently demonstrate that it has the necessary means to complete the business. The SEC added that Binance Us did not explain how it plans to secure Voyager customers' assets.

Despite the rejection, judge Glenn gave the green light for the deal, although he cited that the commission will have the opportunity to file an objection to the deal, which will be finally approved in the future.

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