Voyager Digital secures court approval to sell assets to Binance.US

The bankrupt crypto broker Voyager Digital received initial court approval to sell its assets to Binance.US.

According to the documents, the firm is authorised to conduct a vote on the deal among creditors. Its actual closing cannot take place until hearings preliminarily scheduled for March 2.

If the deal is completed, Voyager Digital customers could recover up to 51% of their funds. They will be migrated to the Binance platform, after which withdrawals will be enabled.

On filed for bankruptcy on July 5, 2022, the crypto broker under Chapter 11 of the U.S. Bankruptcy Code, citing total liabilities estimated at between $1 billion and $10 billion.

Voyager Digital was one of the creditors of the hedge fund Three Arrows Capital. The latter could not repay a debt of 15,250 BTC and $350 million USDC, so in June the broker sent it a notice of default.

In September, FTX won the auction to sell Voyager Digital’s assets, offering around $1.4 billion. However, after the collapse of the Bitcoin exchange in November, the company said it was willing to consider offers from other buyers.

One of the bidders for Voyager Digital’s assets was Binance.US. According to media, its participation in the auction was in question due to ‘xenophobia’ and national security considerations.

Earlier, the platform’s chief Changpeng Zhao rejected links between the platform and the Chinese authorities. He stressed that “the origin or emigration from the PRC should not be the scarlet letter one must wear for the rest of one’s life”.

As reported, on December 19 Voyager Digital said that Binance.US offered the highest price ($1.022 billion) for the assets.

In January 2023, representatives of the crypto broker described the criticism of the deal from Alameda Research and U.S. regulators as ‘hypocrisy and arrogance’.

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