Exchange News- Voyager will sell Binance the assets worth $1 billion under the supervision of a US court.
- The judge voiced his displeasure with the SEC’s decision to halt the transaction.
After much debate over the last week, Binance.US has been given permission to purchase the assets of defunct crypto lender Voyager Digital. Bankruptcy Judge Michael Wiles of the Southern District of New York dismissed all the objections and approved the transaction on Tuesday, March 7.
Voyager will sell Binance the assets worth $1 billion under the supervision of a US court. After Voyager’s bankruptcy last year, Binance showed interest in purchasing the platform’s assets. Nevertheless, Binance.US had several challenges while interacting with the SEC and other American regulatory authorities.
Review by U.S DOJ Pending
The news that Binance was about to back out of the agreement because of regulatory scrutiny emerged last week. The regulatory climate in the United States has been increasingly hostile to cryptocurrency exchanges like Binance. The CEO of Binance, Changpeng Zhao even tweeted, regarding the win.
With the agreement with Binance.US as previously announced, Voyager Digital will compensate customers whose funds were lost when the cryptocurrency lender went insolvent. Even though Binance.US has the court’s confirmation order, it still has to pass through a few regulatory hoops. The U.S. securities laws may be violated if Voyager transfers its assets, as the SEC has already warned.
Judge Michael Wiles stated in yesterday’s ruling:
“I cannot put the entire case into indeterminate deep freeze while regulators figure out whether they believe there are problems with the transaction and plan”.
Also, the judge voiced his displeasure with the SEC’s decision to halt the transaction. Before Judge Michael Wiles’s ruling goes into force, it will be reviewed by the United States Department of Justice.
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Source: https://thenewscrypto.com/court-approves-binance-u-s-to-purchase-assets-of-insolvent-voyager/