Overwhelmed Crypto Lender Voyager Digital got starting court approval to sell its assets to Crypto exchange Binance. US for $1.02 billion. Assuming the deal is endorsed by creditors, customers will recover 51% of Crypto assets held before the bankruptcy filing. Also, the national security survey of the deal is probably going to be completed soon.
Voyager Digital Gets Court Approval
Judge Michael Wiles of the US Bankruptcy Court for the Southern District of New York endorsed the asset buy arrangement deal among Voyager and Binance.US, reported Reuters on January 11.
However, the deal isn’t last until the creditors endorse the deal and a last court hearing from here on out. In the mean time, Voyager tries to speed up the national security survey of the deal that could conclude whether the deal can really continue.
During Tuesday’s court hearing, Voyager attorney Joshua Sussberg noticed that Voyager is actively answering national security concerns raised by the U.S.Committee on Foreign Investment in the United States (CFIUS).Voyager will resolve any issues that would lead CFIUS to go against the deal with Binance.US, said Sussberg.
“We are working with their attorneys to submit an application to move this process along, so that we can deal with that inquiry.”
As part of the deal, Voyager will get a $20 million cash payment and transfer customers to Binance. US’s Crypto exchange. In this way, it will allow customers to pull out their crypto assets from the platform interestingly after bankruptcy.
Voyager estimates that the deal with Binance.US will allow customers to recover 51% of their deposits at the hour of Voyager’s bankruptcy filing. However, assuming CFIUS blocks the deal, customers will get less payout.
In the interim, the Voyager Official Committee of Unstable Creditors took to Twitter to support the deal, taking note of greater recoveries for creditors than a self-liquidation.
Voyager Failed Deal With FTX
In October last year, the court gave the go-ahead for the sale of the company’s assets to FTX.
The deal would have empowered customers to recover 72% Crypto assets they held before the bankruptcy filing. However, the deal was dropped because of the collapse of FTX.
The recent deal with Binance.US is less profitable for Voyager and its customers, however it very well may be the main most ideal choice for them as of now.