Court has approved for troubled crypto lender Voyager Digital to sell its assets to crypto exchange Binance.US, while customers will get 51% of the cryptocurrency assets they had before the bankruptcy filing.
The asset acquisition agreement between Voyager and Binance.US was accepted by Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York, according to Reuters on January 11.
The agreement won’t be official, however, until after a future court hearing and the approval of the creditors for the sale. Voyager is working to hasten the national security evaluation of the transaction, which might determine if it can really go through.
Voyager’s lawyer, Joshua Sussberg, said at the court proceeding on Tuesday that the company is actively responding to concerns about national security made by the U.S. Committee on Foreign Investment in the United States (CFIUS). Any problems that might cause CFIUS to reject the agreement with Binance will be addressed by Voyager. US,” Sussberg remarked.
“We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along.”
Voyager will move users to Binance and receive a cash payment of $20 million as part of the agreement.
US cryptocurrency exchange. Customers will therefore be able to take their cryptocurrency holdings off the site for the first time after bankruptcy.
At the time of Voyager’s bankruptcy filing, according to Voyager’s estimation, consumers would be able to reclaim 51% of their deposits thanks to the agreement with Binance.US. Customers will get a lower compensation, nevertheless, if CFIUS rejects the transaction.
The Voyager Official Committee of Unsecured Creditors, in the meanwhile, approved the settlement on Twitter and noted that it would result in higher recovery for creditors than a self-liquidation.
Although it is less lucrative for Voyager and its clients, the US could be their best choice right now.
