- The Bankruptcy Judge has granted Voyager Digital in entering into the asset acquisition agreement.
- Voyager plans to address the concerns that cause CFIUS to reject the deal.
Voyager Digital, a bankrupt crypto brokerage company, has obtained preliminary court permission for a proposed $1 billion sale of its assets to the U.S. wing of the Binance exchange. According to a report from Reuters, Michael Wiles, Judge of the United States Bankruptcy Court for the Southern District of New York, permitted Voyager to enter into the asset acquisition agreement and request creditor approval. However, the deal will not be finalized until after a subsequent court session.
The latest decision was made during a national security investigation into Binance U.S. that Voyager is attempting to expedite.
Allegations of Voyager Digital
After witnessing a massive collapse due to the continuous downfall of the global cryptocurrency market, Voyager Digital filed for bankruptcy in July. Several companies stepped forward to prevent the firm from going bankrupt, including FTX.
Joshua Sussberg, an attorney for Voyager Digital, stated during the court proceeding that the brokerage platform has been responding to inquiries brought up by the Committee on Foreign Investment in the United States (CFIUS), an inter-agency committee of the US government.
Sussberg stated:
We are coordinating with Binance and their attorneys to not only deal with that inquiry but to voluntarily submit an application to move this process along.
He also added that Voyager plans to address the concerns that will cause CFIUS to reject the deal. In a recent court filing, CFIUS said that the agency review could affect the parties’ ability to complete the transaction, the timing of the completion, or the terms involved.
Moreover, the Binance deal includes a $20 million cash payment and a contract to transfer Voyager customers to his Binance cryptocurrency exchange, Sussberg said. The customers were then able to withdraw money for the first time since July.
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