Binance US Cleared to Buy Voyager Assets
Bankrupt cryptocurrency lender Voyager Digital has been granted court approval to sell more than $1 billion of its assets to Binance US, according to a Bloomberg report on 7 March.
US bankruptcy judge Michael Wiles granted the approval after four days of arguments presented by the company and the United States Securities Exchange Commission. According to the judge's decision, the trading platform will close the sale and issue repayment tokens to impacted customers, giving them back approximately 73% of what they are owed.
Arguments from the SEC that redistributing funds to Binance US from Voyager would violate US securities laws were rejected. However, Peter M. Aronoff, a lawyer with the Department of Justice, said at the hearing that the federal officials are considering appealing Wiles' decision. The ruling comes days after 97% of 61,300 Voyager account holders favored the current Binance US restructuring plan.
Voyager to decide on completing sale or liquidating on its own
The trading platform now has the option to complete the sale or liquidate on its own and turn over the proceeds to account holders, depending on how it views the ongoing federal investigations of Binance in the US.
The decision will also be influenced by Voyager's bankruptcy court dispute with Alameda Research, the sister company of FTX, which is demanding that Voyager hand over what was originally lent out. The company has agreed to reserve $445 million if it loses that dispute.
Customer payouts will be affected by Voyager's bankruptcy court dispute with Alameda Research and its decision to sell its assets to Binance. Brian Tichenor, the lead investment banker, said in a court hearing that if the approved restructuring plan is executed, customers will receive about $100 million more than if the trading company liquidated on its own.
The price of VGX tokens increased 32.9% to $0.50 in the four hours of the news before cooling off to $0.46 at the time of writing, according to CoinGecko data.
Author: Harsh Verma
Harsh is the founder of FinEndorse SEO agency and is an experienced content writer and SEO expert with hands-on industry experience and a proven track of success.