In a significant move towards the acquisition of cryptocurrency investment platform Voyager Digital, the US Bankruptcy Court has approved the company’s reconstruction plan. As part of the plan, Binance.US, the US version of the global cryptocurrency exchange, has been allowed to purchase Voyager’s assets.
Under the terms of the deal, Binance.US will pay approximately $200 million in cash to Voyager and take over the virtual currencies held by its customers. While the US Securities and Exchange Commission (SEC) had initially objected to the acquisition, Michael Wiles, the judge overseeing the bankruptcy case, dismissed the SEC’s concerns, stating that the regulator failed to provide adequate evidence.
However, the transaction is not yet final. Voyager’s financial advisor has stated that it may take up to four weeks to consider issues related to Binance.US’s regulatory compliance and the safety of customer deposits. Additionally, the Committee on Foreign Investment in the United States (CFIUS) is investigating the acquisition, citing national security concerns.
While Binance.US insists that it is independent of its parent company, led by Changpeng Zhao, the CFIUS’s investigation could potentially result in the transaction being halted. Voyager’s lawyers estimate that the acquisition could allow the company to recover 73% of its customer assets. The deal has received the approval of 97% of Voyager’s creditors.
Voyager filed for Chapter 11 bankruptcy in December 2022, after which an auction was held to sell off its assets. Binance.US emerged as the winning bidder, offering approximately $1.4 billion. The acquisition will enable Voyager’s users to finally withdraw their virtual currencies once they have opened a Binance.US account.
Brian Shroder, CEO of Binance.US, has stated that the priority of the acquisition is to “put customers first” and enable the speedy return of customer virtual currencies. The final outcome of the acquisition remains to be seen as the investigation by the CFIUS continues.
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