One step closer to acquiring Voyager
A U.S. bankruptcy court judge approved a restructuring plan for bankrupt crypto asset (virtual currency) investment platform Voyager Digital on the 7th. As part of that, it also allowed Binance.US, the US version of Binance, to acquire Voyager’s assets.
Binance.US has agreed to pay Voyager approximately 2.7 billion yen ($20 million) in cash and take over the cryptocurrencies deposited by Voyager customers.
The U.S. Securities and Exchange Commission (SEC) objected to Binance.US’s acquisition of Voyager, but Judge Michael Wiles dismissed it.
Lawyers for the SEC have argued that Binance.US “may be an unregistered stock exchange,” while noting that it is not the unanimous view of the SEC commissioners. It also said that Voyager’s past sales of VGX tokens could be considered unregistered securities transactions and may have violated securities laws.
Now, Judge Wiles concludes that the SEC failed to present a basis for this allegation.
Foreign Investment Committee in the United States is investigating
The deal has not yet been finalized, according to the judge, as it still needs to go through a verification process.
Voyager’s financial advisors said the acquisition would take up to four weeks to consider Binance.US’s regulatory compliance status and issues related to the safety of customer deposits.
Additionally, the Commission on Foreign Investment in the United States (CFIUS) is also investigating Binance.US’ acquisition of Voyager for the national security risks associated with investing in the United States by foreign companies. CFIUS has not yet objected to the deal, but has warned that it could block the deal depending on the results of the investigation.
Binance.US said the company is based in the United States and is “totally independent” of its parent company, which is headed by Chinese-Canadian CEO Changpeng Zhao (CZ).
The story so far
Voyager’s lawyers estimated that Binance.US could recover 73% of customer assets by acquiring the company. 97% of Voyager’s creditors voted in favor of the deal.
If the takeover deal is approved, Voyager users will only be able to withdraw by obtaining an account on Binance.US.
Voyager filed for bankruptcy last December with Chapter Eleven. After that, an auction was held to sell the assets, and Binance.US won the bid with the highest price of about 140 billion yen.
At the time, Binance.US CEO Brian Shroder commented that the purpose of the bid was to “put customers first” and refund customers’ cryptocurrencies as quickly as possible.
connection: Binance US bids for bankrupt Voyager assets for 140 billion yen
Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. While continuing management, we will reduce debts and restructure the company. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.