Binance.US wins court approval to buy bankrupt Voyager’s digital assets
Amid all the back and forth, Binance.US finally got legal approval to acquire the assets of bankrupt crypto lender Voyager.
On Tuesday, March 7, Michael Wiles, a bankruptcy judge for the Southern District of New York, overruled all objections in his ruling in favor of the sale.
At the direction of the US court, Voyager will sell $1 billion worth of digital assets to Binance.
After Voyager went bankrupt last year, Binance was keen to acquire the assets of the bankrupt company.
It is worth noting that the US company Binance had a difficult time dealing with US regulators, especially the Securities and Exchange Commission.
Last week, reports circulated that Binance was planning to drop the deal amid regulatory pressure.
Cryptocurrency exchanges like Binance have faced the heat of increasing regulatory scrutiny in the USA.
The Binance chief also confirmed the win by tweeting:
Protect users.
Building, then building.
FUD is temporary.
Voyager plans to compensate users:
As part of its deal with Binance.US, Voyager Digital plans to compensate users who lost money when the cryptocurrency lending company went bankrupt.
Although Binance.US has obtained a confirmation order from the court, it still has to clear some regulatory hurdles.
Previously, the SEC said Voyager and its assets could breach US securities laws.
In yesterday’s ruling, Judge Michael Wiles said:
I can’t put the whole affair on a very indefinite hold while the regulators figure out whether or not they think there are problems with the deal and the plan.
The judge also expressed his displeasure with the SEC’s decision to halt the sale.
The decision is reviewed by the US Department of Justice by Judge Michael Wiles before it becomes effective.
The SEC also stated that the proposed sale of VGX tokens by Voyager may interpret securities laws.
In this regard, Judge Wiles said:
If the government wanted to sue that, it should have done so.
Since the regulators did not choose to do so, I have no choice but to rule that all transactions were legal.
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