Binance.US's Acquisition of Voyager Gets Preliminary Court Approval! Users Expected to Retrieve 51% of Assets

The cryptocurrency lending platform Voyager Digital announced bankruptcy in July last year, and customers' assets are still unable to be withdrawn. However, Binance.US has expressed interest in extending a helping hand through a substantial acquisition, and the preliminary discussions on this transaction have made some progress after various deliberations.

Voyager Acquisition Deal Receives Preliminary Approval

According to a report by Reuters, Voyager Digital has received preliminary court approval this Tuesday for Binance.US to acquire its assets for $1.022 billion. Voyager has also indicated that they will seek a national security review for the transaction promptly.

New York bankruptcy judge Michael Wiles has allowed Voyager to enter into an asset purchase agreement with Binance.US and seek creditor approval through voting, with the final outcome of the acquisition to be determined after a future hearing.

Voyager's lawyer, Joshua Sussberg, stated at Tuesday's court hearing that the deal includes Binance paying $20 million in cash and agreeing to transition Voyager's customers to Binance.US, allowing users to withdraw funds for the first time post-bankruptcy. Voyager estimates customers will be able to retrieve 51% of assets that were previously inaccessible due to the bankruptcy.

Furthermore, Sussberg mentioned that Voyager will address any issues that may lead to opposition from the Committee on Foreign Investment in the United States (CFIUS), which primarily reviews national security risks associated with foreign investments in U.S. companies.

"If CFIUS blocks the deal, Voyager would be forced to compensate customers with the cryptocurrency it holds, resulting in less repayment to users," Sussberg said.

Still Facing Regulatory Concerns

As previously reported, this acquisition deal has raised suspicions among multiple U.S. regulatory agencies, citing issues related to customer safety, regulations, inadequate disclosure, and the transfer of customer assets offshore.

Despite the current preliminary approval of the acquisition, these regulatory bodies can still voice opposition during the final approval process.