If you are an active crypto investor, you must know that the recent US bankruptcy judge oversees the matter on Voyager’s Chapter 11 bankruptcy process and has also approved Voyager’s restructuring plan. This is built around the acquisition by crypto exchange Binance. US at a hearing on Tuesday after overruling objections from the U.S. Securities and Exchange Commission and DOJ. Let’s get to know more about the voyager sale to Binance US journey.
Voyager to Binance US:
As per the recent news update, the U.S. Department of Justice has appealed a court order for approving Voyager Digital’s bankruptcy plan. This has created a new hurdle, especially for the crypto lenders who plan to sell assets. This will also affect their plan of transferring their customers to Binance. The US, in a deal, has valued it at $1.3 billion.
The US attorney’s office in the southern district of New York and the office of the U.S. Trustee, the Department of Justice bankruptcy watchdog, filed a notice of appeal late Thursday in the U.S. court in Manhattan. There were no details in the report as to what was being appealed in the court.
The Struggle of Voyager to Binance US:
As we have already mentioned, the US bankruptcy judge Michael Wiles, overseeing the case of Voyager Chapter 11 bankruptcy process, has approved the plan to restructure Voyager and its sale to Binance US. This setup is built around the acquisition by the crypto exchange in the Binance US. This was heard on Tuesday after overruling the objections from the US Securities, the Exchange Commission, and DOJ. However, Voyager Binance US did not respond immediately to the requests for comment on the appeal. The struggle for restricting Voyager as well as its sale to Binance US is very harsh.
The Journey Ahead:
As Voyager Binance did not respond immediately to the requests for the comments on appeal. The lawyers for the U.S Trustee and the US Attorney’s office have spoken at the hearings for considering Voyager’s bankruptcy plan to oppose the provisions of Voyager. The provisions of Voyager include protecting the employees from potential legal claims. It will result in the actions taken during the bankruptcy. They have also argued that Wiles’ order for approving the plan was too broad. This order will potentially prevent the government from bringing regulatory enforcement actions or criminal charges if misconduct is found later.
Wiles has also disagreed to say that Voyager and its employees will not be penalized to carry out a sale, which is court approved to the Binance U.S. If DOJ or any government agency has evidence of misconduct, especially those related to the bankruptcy, they will be presented in court, as said by Wiles.
Further Decisions Taken in Court:
The court has approved this plan of the punishment that will be given If there are any discrepancies found, Wiles has also overruled an objection from the SEC. It has said that it will attempt to cash doubt on the legality of the sale without presenting any evidence that Voyager or Binance U.S had violated the security laws.
Binance US has also agreed to pay Voyager $20 million in cash. They have also agreed to take on the crypto assets deposited by the customers at Voyager. These assets were valued at $1.3 billion in February and account for the bulk of the deal’s valuation, as per Voyager.
Recent Updates from Voyager:
Recently, Voyager has said it can pull out of the Binance US deal. It also said that they would be making an effort to return customers’ funds without seeking help from outside. The Voyager also filed for bankruptcy in July. This has come months after a crash of the major crypto tokens such as TerraUSD and Luna shocked the entire digital asset industry.
Voyager- The Victim of Crypto Winter:
The crypto investing company Voyager is one of the many victims of “Crypto Winter.” The company went bankrupt last summer after the crash left it and could not honor the withdrawals from its users. The sale process has also been difficult from the start when FTX won the bid for the company as well as subsequently collapsed.
Voyager said it would move forward with the Chapter 11 process by distributing cash and crypto directly to its customers. The company will have more information on that process for customers in the coming days. It is also said that Binance will destroy any information about the customer of Voyager; the bankrupt lender has shared this information.
As bankruptcy is looming large, especially in the year of recession, it is quite challenging for the entire world economy to survive or just to maintain a balanced structure. In this scenario, it will be interesting to see how Voyager will be sailing its plan to restructure and survive in the digital asset industry world.
Conclusion:
We saw some of the major tokens crash last year, which sent shockwaves to the entire crypto industry. It will be challenging to see the progress that bankrupt Voyager will be making in the coming days. In this article, we have covered the brief journey of Voyager to Binance US and discussed the impact Voyager had on being a victim of the “Crypto Winter.” That’s all, folks. I hope the article helped you get all the information you needed.
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