Binance US has been given the green light to acquire Voyager Digital after a New York District Court approved the $1 billion deal earlier today. The acquisition of the bankrupt cryptocurrency lender’s assets was first announced by Binance US in December 2021, and the approval comes more than four months later. The Voyager Official Committee of Unsecured Creditors shared the news of the approval on Twitter, stating that “the District Court entered an order approving the settlement” earlier this afternoon. The settlement was reached just two days before the court’s approval.
In December 2021, Binance US made a $1.02 billion bid to acquire the assets of Voyager Digital, which had been undergoing bankruptcy proceedings for over five months at the time. The US Securities and Exchange Commission (SEC) filed an objection to the deal within two weeks of the bid, questioning Binance US’ ability to fund the acquisition. Despite the SEC’s allegations of potential securities law violations, a federal judge granted Binance US’ acquisition of Voyager Digital on March 7. However, the US Department of Justice filed an emergency application to stay the deal on March 17, arguing that the deal could lead to potential fraud or tax avoidance.
On April 19, Voyager and its Unsecured Creditors Committee (UCC) reached a settlement with the US federal government to allow the acquisition deal to proceed. The UCC stated that “the resolution is embodied in a joint stipulation providing that the appeals will continue with respect to the Plan’s exculpation provision.”
The acquisition of Voyager Digital by Binance US marks a significant development in the cryptocurrency industry. The deal will allow Binance US to expand its offerings and establish a stronger foothold in the US market. The acquisition will also provide Voyager Digital with much-needed financial stability and enable it to continue providing cryptocurrency services to its customers.
The approval of the acquisition deal comes amid increasing regulatory scrutiny of the cryptocurrency industry in the US. The SEC has been cracking down on cryptocurrency companies that violate securities laws, and the Department of Justice has been investigating potential fraud and tax evasion in the industry. Despite these challenges, the cryptocurrency industry continues to grow, and acquisitions such as the one between Binance US and Voyager Digital demonstrate the industry’s potential for further expansion.
Overall, the acquisition of Voyager Digital by Binance US is a significant development in the cryptocurrency industry. The deal will enable Binance US to expand its offerings and establish a stronger presence in the US market, while providing Voyager Digital with much-needed financial stability. As the cryptocurrency industry continues to evolve, it will be interesting to see how other companies respond to this acquisition and what the future holds for the industry as a whole.