Binance.US moves ahead with $1 billion Voyager acquisition deal as court overrules objections
|- Binance.US emerged as Voyager’s savior after FTX, its initial bidder, filed for bankruptcy last year.
- Voyager’s lawyers stated that the bankrupt platform’s creditors could recover 73% of their losses.
- The Department of Justice attorney, Peter Aronoff, is also looking to appeal Judge Wiles’ decision.
Binance.US, the American arm of the world’s biggest cryptocurrency exchange, marked a win on Tuesday after overcoming a major hurdle. The company has been the frontrunner in acquiring Voyager Digital’s assets and is now closer to making that happen.
Binance.US gains Voyager assets
Binance.US emerged victorious in New York on Tuesday after bankruptcy judge Michale Wiles overruled all objections against the proposed acquisition of Voyager Digital. Binance’s US arm recently initiated the $1 billion deal after FTX had to back out due to the exchange filing for bankruptcy.
However, this did not sit well with some, such as the Securities and Exchange Commission (SEC), which raised objections to the deal. Judge Wiles concluded that the cavils by the regulators and other entities did not supersede the need for restructuring Voyager Digital. As a result, the $1 billion acquisition of the bankrupt lender’s assets was approved.
The ruling came with additional good news for Voyager Digital’s creditors, with the lender’s lawyers suggesting that affected creditors could recover 73% of what was owed. This is a significant rise from the previous estimates of 51%, which was accepted by creditors at the time when FTX was in talks of taking over.
Regulators have not given up
While the bankruptcy judge’s ruling is in favor of the exchange, it is still first in the line of many steps for Binance.US to complete the $1 billion acquisition. The cryptocurrency exchange would still need to gain the regulators’ approval, which might prove to be difficult given the regulatory bodies were the ones objecting to the deal.
One such attorney, Peter M. Aronoff, with the Department of Justice, stated that he is looking into potentially appealing the bankruptcy judge’s decision. Commenting on Judge Wiles’ decision Binance.US, he stated that it would focus on ensuring Voyager creditors regain control of their assets, adding,
“Our goal has always been to return customers their cryptocurrency on the fastest timeline possible and empower users to make their own decisions about their own assets.”
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