Despite the SEC's objection, the court gives the green light to a multi-billion dollar purchase agreement between Binance US and Voyager – Regulation

The asset purchase agreement between Binance US and bankrupt crypto lender Voyager Digital has reportedly received initial court approval despite objections from various regulators, including the US Securities and Exchange Commission (SEC).

Court Allows Binance US to Purchase Voyager’s Assets

The planned asset purchase between the US arm of cryptocurrency exchange Binance (Binance US) and bankrupt crypto lender Voyager Digital reportedly received initial court approval on Tuesday.

The court still gave the deal the green light Objections from the US Securities and Exchange Commission (SEC) and a number of state securities regulators. Additionally, the US Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews the national security risks of foreign investment in US companies, has raised concerns about Binance’s US Voyager deal. CFIUS said in a Dec. 30 court filing that its review "could affect the parties' ability to complete the transactions, the timing of closing, or relevant terms."

Voyager's attorney, Joshua Sussberg, said during Tuesday's court hearing that the cryptocurrency lender was responding to concerns raised by CFIUS, adding:

We are coordinating with Binance and their attorneys to not only process this request, but to voluntarily submit a request to expedite this process.

As part of the agreement with Binance, Voyager's customers will be transferred to the US crypto trading platform Binance, the lawyer explained, adding that the deal also includes a cash payment of $20 million.

If the deal closes, Voyager customers would be able to withdraw their funds for the first time since July last year when the crypto lender filed for bankruptcy.

Voyager estimates that customers could recover 51% of the value of their deposits at the time the company filed for bankruptcy if the asset purchase deal with Binance US is completed, Sussberg detailed. However, if CFIUS blocks the transaction, Voyager will have to use existing cryptocurrencies to repay customers, he noted, adding that this would result in a smaller payout for Voyager users.

While the purchase agreement between Binance US and Voyager is allowed to proceed, the court has made it clear that regulators may object to the final approval of the sale in the future.

What do you think about the court greenlighting bankrupt crypto lender Voyager's asset purchase deal with Binance US, despite objections from the SEC and other regulators? Let us know in the comments section below.

Kevin Helms

As a student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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