Despite SEC Objection, Court Greenlights Billion-Dollar Asset Purchase Deal Between Binance US and Voyager
The asset purchase agreement between Binance US and bankrupt crypto lender Voyager Digital has reportedly received initial court approval despite objections from various regulators, including the U.S. Securities and Exchange Commission (SEC).
Court Lets Binance US Buy Voyager’s Assets
The proposed asset purchase deal between the U.S. arm of cryptocurrency exchange Binance (Binance US) and bankrupt crypto lender Voyager Digital reportedly received initial court approval Tuesday.
The court greenlighted the deal despite objections by the U.S. Securities and Exchange Commission (SEC) and a number of state securities regulators. In addition, the U.S. Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews the national security risks of foreign investments in U.S. companies, has voiced concerns regarding the Binance US-Voyager deal. CFIUS said in a Dec. 30 court filing that its review “could affect the ability of the parties to complete the transactions, the timing of completion, or relevant terms.”
Voyager attorney Joshua Sussberg said during Tuesday’s court hearing that the cryptocurrency lender was responding to the concerns raised by CFIUS, adding:
We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along.
Under the agreement with Binance, Voyager’s customers will be transferred to the Binance US crypto trading platform, the attorney explained, adding that the deal also includes a $20 million cash payment.
If the deal closes, Voyager customers would be able to withdraw their funds for the first time since July last year, when the crypto lender filed for bankruptcy.
Voyager estimates that customers will be able to recover 51% of the value of their deposits at the time the company filed for bankruptcy if the asset purchase deal with Binance US closes, Sussberg detailed. However, if CFIUS blocks the transaction, Voyager will have to use the cryptocurrencies it has on hand to repay customers, he noted, adding that this would result in a lower payout for Voyager users.
While the asset purchase deal between Binance US and Voyager is allowed to proceed, the court has clarified that regulators will be able to object to final approval of the sale in the future.
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