A majority of Voyager Digital account holders have approved the acquisition of the bankrupt crypto lending firm by Binance US, the US-based arm of the world’s largest crypto exchange.
According to court documents, 97% of account holders with claims against Voyager supported Binance US’s restructuring plan, while only 3% rejected it.
Voters were separated into four groups, including those with account holder claims and three groups with “generic unsecured claims.” All four groups approved the plan.
For court file On February 28, of the 61,300 account holders with claims, 59,183, or 97%, voted in favor of the acquisition.
Binance.US had agreed in December 2022 to purchase Voyager’s assets for $1.02 billion. The Binance US offering was aimed at returning crypto to clients following court-approved disbursements and platform capabilities.
However, the Texas State Securities Board, the state Banking Department and the US Securities and Exchange Commission (SEC) opposed the proposal, citing improper disclosures and a possible violation of privacy law. values.
The SEC claimed that the plan was not confirmable under the US Bankruptcy Code. At the same time, the state of New York alleged that Voyager, which filed for bankruptcy in July, was operating an unlicensed business.
On February 22, the Federal Trade Commission also opened an investigation into Voyager Digital for the “misleading and unfair promotion of cryptocurrencies to the public.”
Despite objections, creditors overwhelmingly supported the restructuring plan. James Murphy, a securities attorney in Richmond, Virginia, said: “Any bankruptcy judge would like to approve a plan that attracts the support of 97% of creditors. But when government regulators come in at the last minute to argue that some aspects of the deal may be illegal, that’s quite the success.”
Binance Defends Restructuring Plan After SEC Objection
A Binance US spokesperson said that the company was willing to provide the missing data and would work with relevant parties to provide any information requested.
The spokesperson explained that assets belonging to Binance US clients are always held on the platform at a 1:1 ratio and are fully protected.
He went on to say that they are excited to welcome Voyager users to Binance US and are happy that most of them have already supported their plan.
However, the SEC opposed the plan on February 22, stating that Voyager needed to provide adequate information about the security of assets and control of clients’ wallets.
It also said the company was unable to demonstrate that a provision could be made to return frozen funds to investors pursuant to federal securities laws. According to the commission, Voyager did not provide that information.
