Binance.US, the American affiliate of leading crypto exchange Binance, has gotten approval to take over bankrupt Voyager Digital. A court ruling was made in favor of the exchange Tuesday, four days after the court hearing.
Bankruptcy judge Michael Wiles pronounced the ruling, sanctioning the $1 billion Voyager acquisition deal. The deal before now was initially agreed on, and the court approved Binance to take over the troubled brokerage firm.
However, events turned when the Securities and Exchange Commission (SEC) disputed the takeover. The SEC stated in a court filing that it would probe Voyager to ascertain if it has any securities laws. After much ado, Voyager has won the case to sell itself to Binance.US.
Wiles Criticizes U.S. SEC
During the court section, Wiles condemned the efforts of the SEC to disapprove of the deal. He faulted the regulator for questioning the restructuring deal without explicitly stating that any of the parties involved were erring.
“I cannot put the entire case into an indeterminate deep freeze while regulators figure out whether they believe there are problems with the transaction and plan,” Wiles said. Wiles noted he would sign an approval for the deal after final wording changes are made.
The deal signed by Binance.US and Voyager involved the exchange paying back customers 73% of their funds. According to the agreement, the payment would be scaled in proportion to the current crypto asset price.
97% of Voyager customers have already approved of the Binance takeover in a community poll conducted by the firm. FTX was close to acquiring Voyager before its sudden demise. The bankrupt crypto exchange agreed to a $1.4 billion purchase before the deal stalled.
VGX Soars Following Court Ruling
Voyager’s native token, VGX, saw a massive uptrend after the court sanctioned the Binance.US takeover. VGX rose over 40%, reaching $0.5.
The token, however, has given away most of its gains as it consolidated after the uptrend. The asset ended the day on a 21% increase despite broader market sideways movement.
