Voyager Digital gets initial court approval for Binance.US deal
- Ryan Lawler, author of Axios Pro: Fintech Deals
Illustration: Aïda Amer/Axios
Bankrupt crypto lender Voyager Digital received initial court approval to move forward with its proposed sale to Binance.US.
Why it matters: The approval brings Binance.US one step closer to closing the acquisition, and Voyager Digital customers closer to recouping funds locked up during bankruptcy proceedings.
Driving the news: U.S. Bankruptcy Judge Michael E. Wiles on Tuesday allowed Voyager to move forward with an updated asset purchase agreement with Binance.US and to solicit creditor votes on the sale.
- In doing so, Wiles overruled objections from federal and state regulators that questioned whether Binance was financially stable enough to close the proposed transaction.
Details: As part of the proposed deal, Binance.US will pay $20 million and take over approximately $1 billion in assets on behalf of Voyager customers.
- If and when the deal closes, those customers could cash out assets from their accounts for the first time since Voyager halted withdrawals and filed for bankruptcy last summer.
What's next: The deal faces hurdles before moving forward. It needs approval from a majority of Voyager's creditors and is subject to another confirmation hearing in March.