Binance’s Acquisition of Voyager Approved by Bankruptcy Judge

Bankrupt crypto firm Voyager Digital has secured preliminary court clearance for its plan to sell $1.02 billion worth of assets to Binance.US.

Voyager Digital, a bankrupt cryptocurrency lender, has secured preliminary court clearance for its plan to sell $1.02 billion worth of assets to Binance.US.

According to a Reuters article, Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York authorized Voyager to engage into the asset acquisition agreement and request creditor approval on January 10. However, the deal won’t be effective until a subsequent court hearing. 

The news comes at a time when Voyager wants to hasten the review of its request to sell off assets to Binance.US, which may cause the deal to be delayed or blocked. Notably, the SEC questioned Binance on a “limited objection” filing made on January 4 by the crypto lender concerning this deal because the acquisition agreement lacked sufficient details.

Joshua Sussberg, a Kirkland & Ellis attorney on behalf of the Voyager asserts: 

“We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along.” 

During the court hearing, Sussberg stated that the company has been responding to inquiries from the Committee on Foreign Investment in the United States (CFIUS) and will deal with any problems that CFIUS may have that could cause it to block the acquisition. 

On December 30, CFIUS notified the court that “one or more transactions contemplated” by Voyager may be the issue for a review, which might lead to delays..

Binance.US Made the Highest Bidding for Voyager’s Assets

According to a December 19 release, Binance.US would allegedly pay $1.022 billion for the assets of Voyager Digital. The company evaluated all of its strategic options and came to the conclusion that Binance.US had offered the “highest and best bid for its assets.” 

Voyager’s agreement with the association of FTX Derivatives Exchange and Alameda Ventures fell through citing the proposal as a “low-ball bid dressed up as a white knight rescue” that exclusively serves FTX’s interests.