• The bankruptcy court has approved Binance.US‘ acquisition of Voyager’s assets
• The court has overruled the SEC’s and multiple states‘ objections to the deal
• Voyager customers will need to vote on the liquidation plan of the deal for it to be sealed
The bankruptcy court has given the go-ahead for crypto lender Voyager to move forward with its planned acquisition by Binance.US. The American crypto exchange had won the bid to purchase Voyager’s assets in December 2022, with a total bid of nearly $1.022 billion. This included covering Voyager’s expenses up to an extent of $15 million and an initial deposit of $10 million in good faith.
The court has allowed Voyager to sell customer accounts to Binance.US, with the caveat that it still needs to receive approval for its liquidation plan. Once this is done, customers will be required to vote on whether they are in favor of the liquidation plan or not.
However, the acquisition has been met with a number of objections from regulators. The Securities and Exchanges Commission (SEC) filed a limited objection motion on the deal, citing concerns about the financial position of Binance.US and how it was able to make such a big financial commitment. Meanwhile, states such as New York, New Jersey, and Vermont raised concerns over the platform’s security protocols.
In response, Voyager conducted an investigation on Binance.US‘ financial status and ensured that it had the required cash on hand to pay debtors. Addressing the security issue, Voyager stated that the concerns were „misplaced“ and were „veiled attempts to protect their respective markets.“ Nonetheless, the bankruptcy court has given the green light for the acquisition to proceed.
In effect, the acquisition would allow Binance.US to expand its reach in the United States and grant it access to Voyager’s customers. It would also provide the exchange a chance to gain more insight into the crypto lending market. Once the liquidation plan is approved, the acquisition will be finalized and customers will be able to start trading on Binance.US.