Court approves Binance.US purchase of Voyager Digital assets

The American arm of Binance may buy the assets of Voyager Digital, the crypto lender undergoing bankruptcy proceedings. Judge Michael Wiles issued the verdict after four days of hearings, according to The Block.

In December 2022, the platform offered the highest bid for Voyager’s assets. However the opposition to the deal came from the SEC and the New York Department of Financial Services.

Wiles acknowledged certain concerns, but noted there were no real grounds to deny Binance.US.

“I am in an absolutely unenviable position, because I have to decide on the proposed deal, despite rumours of possible wrongdoing in the industry where other firms apparently did commit them. But I have not been provided with any evidence that Binance.US will abuse client assets and it cannot be trusted”, said the judge.

During the hearings, a representative from the SEC accused Binance.US of operating an unregistered securities exchange. Wiles pointed to the lack of evidence underpinning the claim.

In delivering the decision, the judge noted the unusual nature of the bankruptcy case and the uncertainty surrounding the regulatory environment in the sector.

“The current regulatory environment can only be described as uncertain, and its future, in my view, is not clear”, said the judge.

The deal he approved could be blocked by the Committee on Foreign Investment in the United States, which screens foreign buyers’ acquisitions of American businesses.

As reported in September 2022, the auction for Voyager’s assets was won by FTX. The bankrupt firm even reached a preliminary agreement with Sam Bankman-Fried’s U.S. exchange unit.

However, in November, FTX Group filed for bankruptcy, after which Voyager had to restart the proceedings.