Binance.US Wins Approval to Acquire Voyager Digital Assets Worth $1B

admin

9. March 2023

Binance.US Can Move Ahead With Plan to Acquire Voyager Digital’s Assets, Judge Rules

Summary

  • Binance.US has been given the go-ahead from a bankruptcy judge in New York to acquire the assets of Voyager Digital for over $1 billion.
  • The proposal had been supported by 97% of Voyager creditors who responded and could see them recovering nearly three-quarters of their holdings.
  • The judge indicated he was in favor of approving the deal but Binance.US may still have to clear certain regulatory hurdles before the deal can be finalized.

Background Information

Binance.US, a crypto exchange platform, proposed to purchase the assets of bankrupt crypto lender Voyager Digital for more than $1 billion. The proposal had been approved by 97% of Voyage’s creditors who responded and could see them recovering almost three-quarters of their holdings. The U.S Securities and Exchange Commission (SEC) and state regulators however objected to this plan, leading to a hearing in front bankruptcy judge Michael Wiles in the Southern District of New York.

Judge’s Decision

Michael Wiles overruled objections from the SEC and state regulators, allowing Binance US to move forward with its plans for acquisition. Despite this decision however, Binance US may still need obtain clearance from certain regulatory bodies before the deal is finalized. In response to this news, Voyager’s VGX token surged 8%.

Implications

This ruling will no doubt come as a relief for both Binance US and Voyage’s creditors as it is set to bring significant financial benefit for both parties; Binance US will gain access to Voyage Digital’s infrastructure while creditors stand to recover up to 75% of their holdings. This decision also signals that there may be further consolidation within the cryptocurrency market as larger players are increasingly able to outcompete smaller competitors via acquisitions such as these.

Conclusion

Overall, it appears that Binance US is on track towards acquiring Voyage digital’s assets although there are still certain regulatory hurdles that need clearing before the deal can be finalized. Nevertheless, this news brings relief both parties involved – Binance US stands gain an established infrastructure while creditors stand a chance at recovering most of their lost funds – as well as signaling potential further consolidation within the cryptocurrency market moving forward.