Despite SEC Objection, Court Greenlights Billion-Dollar Asset Purchase Deal Between Binance US and Voyager – Regulation Bitcoin News
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An asset purchase agreement between Binance US and bankrupt crypto lender Voyager Digital has reportedly received initial court approval, despite objections from several regulators, including the US Securities and Exchange Commission (SEC).
Court allows Binance US to buy Voyager assets
A proposed asset purchase agreement between US cryptocurrency exchange Binance (Binance US) and bankrupt crypto lender Voyager Digital received its first court approval on Tuesday.
The court appealed the trade despite objections from the US Securities and Exchange Commission (SEC) and several state securities regulators. In addition, the Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews the national security risks of foreign investments in US companies, has raised concerns about the Binance US-Voyager deal. CFIUS said in a Dec. 30 court filing that its review “may affect the parties’ ability to complete the transactions, the timing of completion or the relevant terms.”
Voyager attorney Joshua Sussberg said at Tuesday’s court hearing that the cryptocurrency lender responded to the concerns raised by CFIUS, adding:
We are coordinating with Binance and their attorneys to not only address this inquiry, but voluntarily submit a petition to continue the process.
Under the deal with Binance, Voyager’s customers will be transferred to the Binance US crypto trading platform, the lawyer explained, adding that the deal also includes a $20 million cash payment.
If the deal goes through, Voyager customers could withdraw their funds for the first time since July of last year, when the crypto lender filed for bankruptcy.
Voyager estimates that customers can recover 51% of the value of their deposits at the time of the company’s bankruptcy filing if the asset purchase agreement with Binance US is terminated, Sussberg elaborated. However, if CFIUS blocks the transaction, Voyager will have to use available cryptocurrencies to pay customers, he noted, adding that this would result in lower fees for Voyager users.
While the asset purchase agreement between Binance US and Voyager is allowed to proceed, the court has clarified that regulators may oppose final approval of the sale in the future.
What do you think of the court’s entry into bankruptcy of cryptolender Voyager’s asset purchase agreement with Binance US despite objections from the SEC and other regulators? Let us know in the comments section below.
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