• Voyager Digital has won court approval to sell over $1 billion of its assets to Binance.US.
• The ruling allows the crypto lender a path out of its bankruptcy, but still needs due diligence with Binance US before it is final.
• 97% of 61,300 Voyager account holders were found to favor the current Binance.US restructuring plan.
Voyager Digital Wins Court Approval for Sale to Binance US
The United States Bankruptcy Judge Michael Wiles granted Voyager Digital permission to close the sale and issue repayment tokens to impacted customers on Mar. 7, 2021. This follows four days of arguments presented by Voyager and the United States Securities Exchange Commission (SEC). The ruling allows the crypto lender a path out of its bankruptcy, but it still has to undertake some due diligence with Binance US before the sale is final.
Majority Favors Current Restructuring Plan
A Feb 28 filing reported that 97% of 61,300 Voyager account holders were found to favor the current Binance.US restructuring plan which will allow them back approximately 73% of what they’re owed if executed properly. Despite objections from SEC, Judge Wiles rejected arguments that redistribution would violate U.S securities laws and said he could not “put entire case into indeterminate deep freeze while regulators figure out whether they believe there are problems with transaction and plan” .
Potential Dispute With Alameda Research
Voyager’s lead investment banker Brian Tichenor said in a March 3 hearing that customer payouts will also be influenced by dispute between FTX’s sister company Alameda Research which claims that Voyager owes them an undisclosed amount in damages for their involvement in trading activities related to cryptocurrency derivatives contracts in 2017-2018 .
SEC Considering Appeal
Peter M Aronoff from Department Of Justice said at hearing that SEC is currently considering appealing Judge Wiles‘ decision concerning both cases as they believe it may have violated US securities laws .
Conclusion
Voyager now has a few weeks left decide wheather or not complete sale with Binance US or liquidate own and turn over proceeds to customers depending on ongoing investigations conducted by federal authorities .