US Government Approves Voyager’s $1B Asset Sale to Binance.US

SNEAK PEEK

• The US government approved Voyager’s $1 billion asset sale to Binance amidst bankruptcy.
• The government has been granted permission to proceed with an appeal regarding exculpation provisions.
• SEC still objects to Voyager’s sale to Binance, citing violating of US securities laws.

Voyager Digital Holdings, a cryptocurrency lender that recently filed for bankruptcy, has received approval from the US federal government to sell its assets to Binance’s US branch for $1 billion. The deal was reportedly reached between the government, the bankrupt lender’s creditors committee, and Voyager Digital Holdings.

An April 19 court filing in a district court in New York made the permission public. The agreement clears the way for the transaction to go as planned, delivering a possible resolution to Voyager Digital Holdings’ bankruptcy and giving Binance’s US office a chance to increase its market share.

According to the filing, the government has been granted permission to proceed with an appeal regarding exculpation provisions. These provisions are believed to protect Voyager from specific legal liabilities. 

The government’s appeal will continue to be worked on, though it is unclear at this time what the outcome will be. This development follows ongoing legal proceedings involving Voyager, a crypto trading platform accused of making false claims regarding its regulatory status. On April 19, the Voyager Official Committee of Unsecured Creditors tweeted that “appeals will continue with respect to the Plan’s exculpation provision.”

2/ The resolution is embodied in a joint stipulation providing that the appeals will continue with respect to the Plan’s exculpation provision. The Government has agreed that the Plan may move forward without such provision and will not otherwise be subject to the stay.

— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 19, 2023

However, according to reports, the US Securities and Exchange Commission (SEC) has expressed disapproval of the proposed sale of Voyager to Binance’s US arm. The SEC has cited concerns that Binance’s US arm may be operating an unregistered securities exchange, violating US securities laws. This objection was raised in February of this year, and since then, the deal has remained in limbo.