The asset purchase agreement between Binance US and bankrupt crypto lender Voyager Digital received initial court approval, despite objections from various regulators, including the US Securities and Exchange Commission reported that.
Court Allows Binance US to Purchase Voyager’s Assets
A proposed asset purchase deal between the U.S. arm of cryptocurrency exchange Binance US and bankrupt crypto lender Voyager Digital reportedly received initial court approval on Tuesday.
The court green-lighted the deal despite objections by the U.S. Securities and Exchange Commission (SEC) and many state securities regulators. In addition, the Committee on Foreign Investment in the United States (CFIUS), the interagency agency that reviews the national security risks of foreign investment in U.S. companies, has expressed concerns about the Vinance US-Voyager transaction; CFIUS said in a Dec. 30 court filing that its review was based on “the parties’ . may affect the ability to complete, the timing of completion, or related terms.”
Voyager attorney Joshua Sussberg said during Tuesday’s court hearing that the cryptocurrency lender is addressing concerns raised by CFIUS, adding.
We are coordinating with Binance and its attorneys to address that inquiry as well as voluntarily file an application to move this process forward.
Under the agreement with Binance, Voyager’s customers will be transferred to the Binance US crypto trading platform, the lawyer explained, adding that the transaction also included a $20 million cash payment.
When the deal closes, Voyager customers will be able to withdraw their funds for the first time since last July, when the crypto lender filed for bankruptcy.
Voyager estimates that if the asset purchase transaction with Binance US is closed, customers will be able to recover 51% of the value of their deposits at the time the company files for bankruptcy, Sussberg detailed. However, if CFIUS blocks the transaction, Voyager would have to repay customers using the cryptocurrency it has on hand, he noted, adding that this would be a low payment for Voyager’s users.
While the asset purchase transaction between Binance US and Voyager is allowed to proceed, the court clarified that regulators could challenge final approval of the sale in the future.
What do you think about the court greenlighting bankrupt crypto lender Voyager’s asset purchase agreement with Binance US despite SEC and other regulators’ objections? Let us know in the comments section below.
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