Bankrupt cryptocurrency lender Voyager Digital has received court approval to sell over $1 billion of its assets to Binance US.
The approval was granted by United States Bankruptcy Judge Michael Wiles on March 7, after four days of arguments between Voyager and the US Securities Exchange Commission (SEC).
Wiles said he will allow the trading platform to complete the sale of Binance US and issue redemption tokens to affected Voyager customers, which would pay them back about 73% of their debt.
According to a March 7 report by Bloomberg, Wiles dismissed a number of SEC arguments that reallocating Voyager’s funds to Binance.US would violate US securities laws:
“I cannot freeze the entire case indefinitely while regulators find out if they believe there are any problems with the transaction and the plan.”
Peter M. Aronoff, a Department of Justice (DOJ) attorney, said it was considering appealing Wiles’ decision.
The judge’s decision comes just over a week after 97% of 61,300 Voyager account holders were found to support Binance.US’ current restructuring plan, according to a Feb. 28 filing.
This is an evolving story and more information will be added as it becomes available.
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