Voyager Acquisition Deal Progress
US cryptocurrency exchange Binance.US has made progress on its deal to acquire the assets of bankruptcy-filed crypto investment platform Voyager Digital.
U.S. District Judge Michael Wiles of the Southern District of New York Bankruptcy Court confirmed Voyage’s information regarding Binance.US’s solvency at a hearing held on the 9th. As a future task, we are waiting for the examination by the Committee on Foreign Investment in the United States (CFIUS).
Binance US won the bid in December 2022, offering approximately 140 billion yen ($1.02 billion) as the sale price of Voyager’s assets. However, it has been challenged by the SEC (U.S. Securities and Exchange Commission), New Jersey, Vermont, New York, Texas, and the U.S. Trustee on the grounds of failure to verify solvency.
According to documents filed by Voyager Digital’s lawyers on the 8th, Binance.US will make a cash payment of approximately ¥2.6 billion ($20 million) to debtors and a maximum redemption of approximately ¥2 billion ($15 million). Money is required.
Due diligence has shown that Binance.US has sufficient cash on hand to pay out a total of $35 million, as well as a capital equivalent to 100% of all Binance.US customers’ digital assets. I have confirmed that it is maintained.
Voyager Digital said the sale to Binance.US would allow it to recover 51% of the value of its customers’ deposits when it filed for bankruptcy.
Voyager Digital filed for Chapter 11 (Chapter 11) bankruptcy protection in July 2022. After that, it proceeded with the asset sale process to FTX Trading, but it was stalled when FTX filed for bankruptcy in November.
According to court documents, the transaction with Binance.US is structurally similar to the transaction with FTX US. Debtor sells all assets to Binance.US and transfers all customer accounts to Binance.US. The holders of general unsecured debts will be paid cash and the debtors’ assets will be liquidated in a timely manner.
According to Voyager Digital’s December press release, Binance US sold for $1.02 billion. The breakdown is approximately $1 billion in current market value of Voyager’s cryptocurrency portfolio, plus $20 million in future incremental value.
Relation:SEC objects to Binance US’ Voyager acquisition
A confirmation hearing is scheduled to be held in March. Prior approval of a majority of Voyager Digital’s creditors is also required.
At the hearing, Voyager’s attorney Sussberg also said that he and Binance.US are responding to a review by the Commission on Foreign Investment in the United States (CFIUS) that objected to the transaction between the two companies in court filings dated December 30. Stated.
Committee on Foreign Investment in the United States (CFIUS)
An organization that screens foreign investments in US companies, businesses, and technologies from the perspective of US national security. headed by the US Treasury Secretary. Requires foreign investors to notify CFIUS in advance of certain transactions. In particular, cases of blocking Chinese investment in the United States are increasing.
Binance.US is operated by California-based BAM. It claims to be “fully independent” from Binance, whose CEO is Chinese-Canadian Changpong Zhao. Binance has been accused of violating money laundering and sanctions laws by federal prosecutors at the U.S. Department of Justice, sources have reported.
Relation:Binance Rebuts Reports of US Department of Justice Money Laundering Complaints