According to a March 7 Bloomberg story, a New York bankruptcy judge has permitted Voyager Digital to sell its assets to Binance.US.
According to Judge Michael Wiles’ decision, the two parties to the proposal may try to finalize the transaction and transfer the pertinent crypto assets. Voyager must now choose whether to proceed with the transaction after evaluating Binance.US’s level of dedication and compliance with legal requirements.
Proceeds from the transaction will be given to former Voyager subscribers. This solution will give clients around 73% of their amount owed due to changes in cryptocurrency market values.
The transaction is thought to be worth more than $1 billion, but according to other Reuters reporting, Binance has only agreed to pay $20 million in cash thus far.
97% of customers had voted in support of the proposal, according to Voyager’s report from March 1. In mid-2022, Voyager stopped making withdrawals and declared bankruptcy.
Following the failure of the cryptocurrency loan company Celsius at the time, it was one of the businesses that failed.
Judge Expressed Hostility To SEC
The deal has been opposed by the U.S. Securities and Exchange Commission (SEC), which fears that it will make it more difficult for it to control the cryptocurrency market.
Judge Wiles exhibited animosity against the regulator as a result of how time-consuming its complaints were. He commented during the most recent decision:
“I cannot put the entire case into indeterminate deep freeze while regulators figure out whether they believe there are problems with the transaction and plan.”
The SEC considers Binance.US unqualified to carry out the transaction and that Voyager’s recovery token should be treated as a security. The allegations started in January.
Opponents of the SEC’s tough regulatory policies may perceive the judge’s forthright words as a breath of fresh air. While the SEC did not initially bring the case, this decision does not necessarily portend a wider path toward further victories against the agency. The SEC may also try to challenge the judge’s judgment.
