According to a filling in the New York District Court, the U.S. government and the Official Committee of Unsecured Creditors (UCC) agreed that the proposed $1 billion deal for Binance.US to acquire the bankrupt cryptocurrency lender Voyager Digital Holdings could move forward as planned.
Additionally, the filing states that the federal government will continue to work on an appeal on exculpation provisions – conditions that allow Voyager to be protected from legal liabilities. According to a series of Tweets, the Voyager UCC stated that everyone involved has agreed on the resolution, provided the appeals will continue with respect to the exculpation provision.
Voyager Gets Approval For Binance.US Sale
At a time, the CEO of Binance, Changpeng “CZ” Zhao was considering walking away from the proposed buyout deal. This was based on the several back and forth hinged on the acquisition. As reported by TheCoinRise in March, the bankrupt cryptocurrency lender was granted permission by the US Bankruptcy Judge Michael Wiles to sell its assets to Binance.US.
Wiles permitted the trading platform to deal with Binance.US and send reimbursement tokens to the affected Voyager clients, returning them around 73% of what they are due. Meanwhile, the Judge’s ruling came a week after it was revealed that about 97% of the 61,300 Voyager account holders supported the current Binance.US restructuring proposal.
The Prior Race for Voyager Digital Assets
A lot of businesses and companies like Binance, the now-bankrupt FTX, Alameda Research, and others competed for the bankrupt lender’s assets after its bankruptcy declaration.
Following the denial of FTX’s offer to buy the remaining assets from Voyager Digital, Binance indicated its interest through its U.S. subsidiary by offering $1.022 billion for the insolvent company and the latter called it the “highest and best bid for its assets” after considering all of its strategic alternatives.
Recall that Voyager’s agreement with the association of FTX 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.
Regulators Opposed Voyager and Binance.US Deal
A January 5th court hearing was scheduled to finalize the purchase of the deal and when the time finally came, U.S. Securities and Exchange Commission (SEC) objected to the buyout citing several discrepancies including Binance’s capability to take on such a huge deal.
Likewise, the Texas State Securities Board and the Department of Banking opposed the planned agreement between Binance.US and the insolvent crypto lender.