Crypto Giant Binance.US Makes Billion-Dollar Splash With Voyager Digital Acquisition

Binance.US has taken a significant step towards acquiring the assets of bankrupt cryptocurrency lender Voyager Digital in a deal valued at more than $1 billion.

A bankruptcy judge in the Southern District of New York, Michael Wiles, ruled in favor of the proposed acquisition, stating he would work through the confirmation order.

However, Binance.US may still face regulatory obstacles before finalizing the deal.

The VGX token of Voyager surged over 8% following the announcement.

The acquisition plan was put together after FTX, the previous bidder, filed for bankruptcy protection in November.

The deal was supported by 97% of Voyager's creditors who responded to the proposal, with the potential of recovering almost three-quarters of their holdings.

During a lengthy hearing, Voyager lawyers informed the court that creditors could potentially recover 73% of their investment, with a bullish crypto market raising the previous estimate of 51%.

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Although there were objections from parties and regulators during the hearing, Judge Wiles ruled many of these objections did not make a strong argument or would have unnecessarily slowed down the proceedings.

The objections raised were related to complex issues, such as the sharing of personal data with Binance.US under the deal and the transfer being a better deal for creditors than immediate liquidation.

There were also concerns about Voyager customer data, including Social Security numbers, being shared with Binance.US and stored in offshore databases.

An attorney representing Binance.US clarified that no employees would have access to this information.

Judge Wiles also commented that the transactions related to Voyager's sale of VGX tokens were legitimate based on the evidence presented during the hearing.

Although Binance.US cleared a significant hurdle in acquiring Voyager's assets, regulatory hurdles remain before the deal can be finalized.

Nevertheless, the recent ruling has provided positive momentum for the acquisition.

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Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.

Photo: mundissima via Shutterstock