Binance Reserves Court Approval to Acquire Bankrupt Firm Voyager
On January 10, bankrupt crypto lender Voyager Digital received preliminary court approval for a proposed $1 billion sale of its assets to Binance US.
During the hearing, the US District Judge explains various aspects of the proposed plan to sell Voyager assets.
The deal, which will be subject to another confirmation hearing in March, must also be approved by a majority of Voyager's creditors.
It comes as Voyager aims to accelerate the review of its request to sell assets to Binance US.
The proposed deal by bankrupt crypto lender Voyager to sell some of
Its assets to Binance US is one step closer to becoming a reality.
On January 10, bankrupt crypto lender Voyager Digital received preliminary court approval for a proposed $1 billion sale of its assets to Binance US. During the hearing, US District Judge Michael Wiles of the Southern District of New York approved disclosure statements.
The District Judge explains various aspects of the proposed plan to sell Voyager assets. But the Judge requested that attorneys working on the deal revise the proposed order documents before he approves them.
The deal, which will be subject to another confirmation hearing in March, must also be approved by a majority of Voyager's creditors. It comes as Voyager aims to accelerate the review of its request to sell assets to Binance US.
Voyager Digital, a well-known cryptocurrency lender, filed for bankruptcy in July 2022, citing market volatility and the unexpected failure of 3AC. In the past few months, several crypto exchanges made offers to the troubled crypto lender, but none of them come to any conclusion.
On December 10, Voyager announced that it had approved Binance US's bid to acquire its assets for $1.022 billion. This came after a $1.4 billion deal with FTX US fell through due to the crypto exchange's collapse.
US Authorities are Looking into Binance
Reports say that the US Attorney's Office is looking into whether Binance's global entity laundered money. The investigation began in 2018 and is focused on whether or not Binance is following US laws and sanctions against money laundering.
Recently, the SEC also filed a restricted objection because it didn't know enough about Binance US's ability to pay for the Voyager deal. The SEC wants to know how Binance US operations will work after the transaction, as well as how customer assets will be protected during and after the transaction.
The CEO of Binance, CZ, has said in public that Binance US is a completely separate entity. Experts think that the deal will show that Binance US is a legitimate business and that it can run on its own.
The crypto community thinks that the deal to buy Voyager Digital will definitely help both the troubled company and its customers.
What are your thoughts on Binance receiving court approval to acquire the bankrupt crypto lender Voyager? Please share your valuable thoughts in the comment section below.
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