Binance US and Voyager Reach Agreement – Court Approves $1 Billion Deal

B. Ali
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Voyager, the bankrupt cryptocurrency broker, got a helping hand after a court approved its preliminary plan to sell its assets to Binance.US for $1 billion. This tremendous decision was regarded as a positive action for Voyager’s creditors and customers, who will be given the chance to get back 51% of their deposits.

It’s worth noting that as a result of the “crypto winter” and its exposure to the now-defunct Terra, Voyager declared bankruptcy in July. Later, FTX won an auction to purchase the firm’s remaining assets before declaring bankruptcy. As a result, if the agreement is carried out, Voyager customers who have been unable to access their funds since July 2022 will receive a 51% capital refund.

According to Reuters, US Bankruptcy Court Judge Michael Wiles granted preliminary approval to the asset acquisition agreement between Voyager and BinanceUS yesterday, a critical milestone in the $1 billion deal.

Everyone is now waiting for the final decision, which will be announced at an upcoming court session in which creditors will vote on their preferences. Voyager is attempting to expedite the approval process because it is concerned that a national security investigation will stymie or delay the transaction.

Voyager’s lawyer, Joshua Sussberg, told the court that the company has been cooperating with the Committee on Foreign Investment in the United States (CFIUS) and is attempting to resolve any potential issues.

Furthermore, the Voyager representative stated that they are working with Binance and their legal team to expedite the process by voluntarily applying.

Committee on Foreign Investment in the US

On December 30, the US Committee on Foreign Investment in the United States (CFIUS) filed a court document outlining how its ongoing review of the proposed transaction may affect the terms of the contract, the timing of the transaction’s closing, or the parties’ ability to complete the required transactions. According to Joshua Sussberg, an attorney representing Voyager, Voyager and Binance are attempting to address CFUIS’s concerns and expedite the agency’s review of the transaction.

Joshua Sussberg stated, “We are cooperating with Binance and their counsel to not only address that issue but also to voluntarily file an application to expedite this process.

Sussberg claims that if the transaction is refused by CFIUS, Voyager will be compelled to refund its customers using the cryptocurrency it currently has on hand, which will limit the amount of money delivered to the clients, and clients do not want less recovery.

This is why creditors prefer the Binance arrangement over the Voyager liquidation because it delivers a better recovery. The asset acquisition agreement with BinanceUS has been accepted by Voyager’s Official Committee of Unsecured Creditors, which would result in higher payments to creditors than if Voyager liquidated its reserves unilaterally.

 

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Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.