- Binance.US has made significant progress in acquiring bankrupt crypto lender Voyager Digital after facing several regulatory hurdles.
- The agreement between the Uncensored Creditors Committee (UCC) and the U.S. government is a significant milestone in the acquisition process.
- The acquisition is pending clearance by the District Court, and Voyager Digital and the UCC are working with Binance.US to move forward as quickly as possible.
A noteworthy advancement has occurred as Binance.US, a cryptocurrency exchange, has made progress towards acquiring Voyager Digital, a crypto lending company that has declared bankruptcy. This progress comes after a series of regulatory obstacles that lasted for several months.
On April 19, Voyager announced that an agreement had been reached between the Uncensored Creditors Committee (UCC) and the U.S. government, allowing Binance.US to acquire Voyager.
In recent times, procurement has encountered multiple obstacles from regulators, leading to a state of unpredictability regarding the fate of the transaction.
The District Court’s approval of the planned purchase by Binance.US is still necessary, but it will move through as per the deal recently made between the UCC and the U.S. government.
According to reports, it has been stated that the government has agreed to allow the plan to proceed without such provisions, and it will not be subject to the stay. It has also been reported that Voyager and the UCC are collaborating with Binance.US to move forward as quickly as possible once the District Court approves this stipulation.
Voyager Digital’s ambitious acquisition plans face regulatory obstacles
In the middle of 2022, Voyager Digital declared bankruptcy, attributing it to unfavorable market circumstances. To salvage the lending firm, a multitude of organizations suggested diverse approaches.
In January of 2023, Binance.US was granted permission by the court to buy certain of Voyager’s assets. Despite this, the Securities and Exchange Commission (SEC) has voiced concerns about the legitimacy and fairness of the $1 billion transaction.
Despite the challenge faced, Voyager Digital managed to obtain the green light from Bankruptcy Judge Michael Wiles to vend assets worth $1 billion to Binance.US. However, the bankruptcy court’s decision didn’t sit well with the U.S. Department of Justice (DoJ), which lodged an appeal against the ruling on March 19.
U.S. Government Objects: Binance’s Big Bid
In March, a judge overseeing a bankruptcy case approved for Binance to move forward with its bid to acquire Voyager Digital’s assets worth $1 billion. Despite opposition from the U.S. government, the court permitted the acquisition. The Department of Justice (DoJ) expressed its disagreement, alleging that the court had overstepped its bounds, and requested a delay of two weeks to appeal the decision.
Following a series of regulatory challenges, Binance.US has made a substantial stride in its bid to acquire the defunct cryptocurrency lending platform Voyager Digital. This positive development comes from an agreement between the UCC and the U.S. government, signifying a significant milestone in the ongoing acquisition process.