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 US Securities and Exchange Commission (SEC). .
Court Allows Binance US to Buy Voyager Assets
The proposed asset purchase agreement between the US arm of cryptocurrency exchange Binance (Binance US) and bankrupt crypto lender Voyager Digital reportedly received initial court approval on Tuesday.
The court gave the deal a green light despite objections from the US Securities and Exchange Commission (SEC) and a number of state securities regulators. In addition, the Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews the national security risks of foreign investments in US companies, has raised concerns regarding the Binance US- voyager. CFIUS said in a December 30 court filing that its review “could affect the parties’ ability to complete the transactions, the timing of completion, or the relevant terms.”
Voyager’s lawyer, Joshua Sussberg, said during Tuesday’s court hearing that the cryptocurrency lender was responding to concerns raised by CFIUS, adding:
We are coordinating with Binance and their attorneys to not only address that query, but also to voluntarily submit a request to move this process forward.
Under the agreement with Binance, Voyager clients will be transferred to Binance US’s cryptocurrency trading platform, the lawyer explained, adding that the agreement also includes a cash payment of $20 million.
If the deal goes through, Voyager clients could withdraw their funds for the first time since July of last year, when the crypto lender filed for bankruptcy.
Voyager estimates that clients will be able to recover 51% of the value of their deposits at the time the company filed for bankruptcy if the asset purchase agreement with Binance US is closed, Sussberg detailed. However, if CFIUS blocks the transaction, Voyager will have to use the cryptocurrencies it has available to pay customers, he noted, adding that this would result in a lower payment for Voyager users.
While the asset purchase agreement between Binance US and Voyager is allowed to proceed, the court has clarified that regulators may challenge the final approval of the sale in the future.
What do you think about the court authorizing bankrupt crypto lender Voyager’s asset purchase deal with Binance US despite objections from the SEC and other regulators? Let us know in the comments section.
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