Voyager-Binance Deal: Customers To Recover 51% Of Pre-Bankruptcy Crypto Assets

Beleaguered crypto lender Voyager Digital received initial court approval to sell its assets to crypto exchange Binance.US for $1.02 billion. If the sale is approved by creditors, customers will recover 51% of crypto assets held before the bankruptcy filing. Moreover, the national security review of the deal is likely to be completed soon.

Voyager Digital Receives Court Approval

Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York approved the asset purchase agreement deal between Voyager and Binance.US, reported Reuters on January 11.

However, the deal is not final until the creditors approve the sale and a final court hearing in the future. Meanwhile, Voyager seeks to expedite the national security review of the deal that could decide whether the deal can actually proceed.

During Tuesday’s court hearing, Voyager attorney Joshua Sussberg noted that Voyager is actively responding to national security concerns raised by the U.S. Committee on Foreign Investment in the United States (CFIUS). Voyager will address any issues that would lead CFIUS to oppose the deal with Binance.US, said Sussberg.

“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.”

As part of the deal, Voyager will receive a $20 million cash payment and transfer customers to Binance.US’s crypto exchange. Thus, it will allow customers to withdraw their crypto assets from the platform for the first time after bankruptcy.

Voyager estimates that the deal with Binance.US will allow customers to recover 51% of their deposits at the time of Voyager’s bankruptcy filing. However, if CFIUS blocks the deal, customers will receive less payout.

Meanwhile, the Voyager Official Committee of Unsecured Creditors took to Twitter to approve the deal, noting greater recoveries for creditors than a self-liquidation.

Voyager Failed Deal With FTX

In October last year, Voyager received court approval to sell its assets to FTX for $1.42 billion. The deal would have enabled customers to recover 72% crypto assets they held before the bankruptcy filing. However, the deal was canceled due to the collapse of FTX.

The recent deal with Binance.US is less profitable for Voyager and its customers, but it could be the only best option for them currently.

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