In the long legal journey surrounding the bankruptcy of Voyager Digital, the platform received an initial agreement to sell its assets to Binance.US. If this is an encouraging point for exchange customers, nothing is certain yet.
Voyager Digital moves forward with Binance.US for its asset buyout
In the long series of the American exchange Voyager Digital, the last elements of the file seem support Binance.US for the purchase of the assets of the bankrupt cryptocurrency platform. Indeed, Michael Wiles, a bankruptcy court judge for the Southern District of New York, gave his initial approval for the transaction.
However, this does not fully confirm the operation, because an additional hearing is indeed scheduled for March, in order to deliver a final verdict. In addition, note that the Securities and Exchange Commission (SEC) has also taken up the case, as well as the Committee on Foreign Investment in the United States (CFIUS). This therefore complicates a case, which has already been complicated enough, while the FTX scandal has come to cancel the initial possibilities of redemption.
CFIUS, authority on foreign investment in the United Statesmust thus rule on the case of Binance.US, whose parent company is foreign to the country.
Joshua Sussberg, a lawyer at Kirkland & Ellis and working for Voyager Digital, informed that he was doing what was necessary with his client and Binance.US in order to carry out this operation:
“We are coordinating with Binance and their attorneys to not only address this investigation, but to voluntarily submit a request to move this process forward. »
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A protracted situation
While Voyager Digital had declared Three Arrows Capital (3 AC) in default of payment at the end of June 2022, this litigation had placed the platform at odds with its customers, which forced it to suspend withdrawals on July 1. Since that date, Voyager customers can no longer access their funds.
FTX then offered to come to the rescue of the company, but the exchange’s own bankruptcy cut short the negotiations. That’s why Binance.US came back with an offer of around $1 billion.
If a transaction finally succeeds, it could enable stranded customers to regain 51% of the value of their deposits. On the other hand, if this operation also falls through, Joshua Sussberg believes that customers will be the first to suffer, because the sum that would be returned to them would be even lower. The conclusion of this case therefore depends on the verdict of next Marchas well as notices from the SEC and CFIUS.
👉 Also in the News – Binance Admits Its BUSD Stablecoin Wasn’t Always 100% Backed by US Dollars
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Source: Reuters
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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