Binance.US Clears First Hurdle in Buying Voyager Capital
Reading Time: 2 minutes Binance.US has cleared the first hurdle required to acquire Voyager Digital A United States Bankruptcy Court judge granted initial approval for the sale There are other potential roadblocks which Binance.US will have to pass to prove it is a suitable buyer Binance.US has been given initial court approval for its proposed purchase of bankrupt crypto lender Voyager Digital for just over $1 billion. The approval, granted by Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York, allows Voyager to enter into the asset purchase agreement and seek creditor approval, but the sale will The post Binance.US Clears First Hurdle in Buying Voyager Capital appeared first on FullyCrypto.
- Binance.US has cleared the first hurdle required to acquire Voyager Digital
- A United States Bankruptcy Court judge granted initial approval for the sale
- There are other potential roadblocks which Binance.US will have to pass to prove it is a suitable buyer
Binance.US has been given initial court approval for its proposed purchase of bankrupt crypto lender Voyager Digital for just over $1 billion. The approval, granted by Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York, allows Voyager to enter into the asset purchase agreement and seek creditor approval, but the sale will not become final until a future court hearing. The news will be a relief to Binance CEO Changpeng Zhao who has had to fend off more accusations of improper actions this week.
Judge Allows Sale to Pass to Creditor Vote
Binance.US was second to bid for Voyager after its collapse last year, with FTX being the preferred bidder. However, Binance was left with a clear field once FTX imploded, and the deal is now being ratified by the bankruptcy courts to make sure it’s a suitable deal for creditors.
Judge Wiles yesterday allowed Voyager to enter into the asset purchase agreement and seek creditor approval over the deal, but the sale will not become final until a court hearing at a later date.
In a tweet posted yesterday, The Voyager Official Committee of Unsecured Creditors, which represents creditors with no security interests in Voyager, supported the Binance.US deal and asked that the Committee on Foreign Investment in the United States (CFIUS), which has concerns over the role of Binance and could oppose the transaction, allow it to pass:
5/ There will not be a single substantial transfer of crypto from Voyager to https://t.co/5sjac1H4CW on the closing date that would be at risk in a https://t.co/5sjac1H4CW insolvency.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) January 10, 2023
Binance Would Welcome Good News
Binance is allegedly the subject of a federal probe into its activities, although no charges have been brought against the company or Zhao himself, while the company was also forced to admit this week that it under-backed its BUSD stablecoin in the past. If a U.S. bankruptcy court were to allow the Voyager deal to pass, it would be a feather in Binance’s cap and might undermine some of the negativity perpetually thrown at it.
However, the Securities and Exchange Commission will also have to be satisfied with any deal, having filed its own objection last week.
The post Binance.US Clears First Hurdle in Buying Voyager Capital appeared first on FullyCrypto.
