A bankruptcy judge in New York has ruled that Voyager Digital is allowed to sell its assets to Binance.US, according to a Bloomberg report on March 7.
Binance.US can buy $1 billion worth of assets
Judge Michael Wiles ruled that the two companies involved in the offering could attempt to close the deal and transfer the respective crypto assets.
Voyager must now decide whether to proceed with the deal after evaluating Binance.US for its level of engagement and compliance with regulations. If the deal is successful, the proceeds will be shared among former Voyager customers. This agreement will give customers about 73% of their amount due due to price changes in the cryptocurrency market.
The deal is valued at more than $1 billion, though other reports from Reuters suggest that Binance has so far agreed to pay $20 million in cash.
Voyager reported on March 1 that 97% of customers have voted in favor of the plan.
Voyager stopped withdrawals and filed for bankruptcy in mid-2022. It was one of many businesses that failed after the collapse of crypto-lending firm Celsius at the time.
The judge showed hostility to the SEC
The US Securities and Exchange Commission (SEC) has challenged the deal, which it believes will undermine its ability to regulate the crypto industry.
Judge Wiles expressed hostility to the regulator because of the time-consuming nature of its appeals. During the present judgment he said:
“I can’t put the whole case on an indefinite deep freeze until regulators know if they think there are problems with the transaction and the plan.”
SEC believes that The Voyager recovery token must be regulated as a security and that Binance.US is not eligible to complete the purchase. His complaints date back to January.
Critics of the SEC harsh regulatory policies can take the judge’s frank statements as a breath of fresh air. However, this decision does not necessarily mean a wider path to other victories against the SEC, as the regulator did not initially present the case.
Additionally, the SEC may try to appeal the judge’s decision.
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