Binance.US's $1.3 Billion Takeover Of Voyager Gets The Go-Ahead From US Bankruptcy Court

Judge Michael Wiles of the US Bankruptcy Court has authorized Voyager's reorganization plan, which calls for Binance.US to buy the business. As part of the agreement, Binance.US will hand over the crypto assets placed by Voyager clients, which were assessed at $1.3 billion in February, and give $20 million in cash to Voyager. The digital assets owned by the clients account for the majority of the deal's value.

Wiles overturned the US Securities and Exchange Commission's challenge to the Binance purchase, which the SEC had argued was running an illegal stock exchange, and the reorganization plan was authorized. Wiles characterized the complaint as “vague,” contending that the SEC should not have delayed until the last minute to raise a particular concern and that it failed to provide any supporting documentation.

The transaction is still under review, despite Wiles' acceptance of Voyager's plan enabling the business to start moving client assets to Binance. The dangers to national security posed by foreign investment in Voyager are being looked into by the Committee on Foreign Investment in the United States (CFIUS).

Voyager's financial advisors have stated that the company requires up to four weeks to review new questions about Binance.US's commitment to the acquisition, Binance.US's regulatory compliance, and the security of Binance.US customer deposits. As a result, Voyager could still walk away from the deal.

The US has stated that it is “totally autonomous” of its foreign parent firm Binance, which is controlled by Chinese-born and Singapore-based Changpeng Zhao. After the transaction is finished, Voyager's clients will have Binance. Since Voyager has frozen their accounts in the summer of 2021, it will be able to transfer money for the first time thanks to its established US accounts.

Following the collapse of two significant cryptocurrencies, TerraUSD and Luna, which significantly disrupted the market for digital assets, Voyager filed for insolvency in July of that year. Customers will be able to recoup 73% of the value of their investments as of the time of Voyager's insolvency declaration thanks to the selling, claims Voyager.

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