Bankrupt crypto lender Voyager has struck a deal with the United States federal government, allowing it to proceed with its $1 billion acquisition deal with American crypto exchange Binance.US.
U.S. Govt Agrees to Voyager-Binance.US Deal
In a Thursday Twitter post, Voyager’s Official Committee of Unsecured Creditors (UCC) revealed that Voyager and the government reached a resolution that will allow the sale to move forward and go effective soon. The resolution is embodied in a joint stipulation that states that the appeals will continue against the plan’s “exculpation” provision, according to the Committee.
“The Government has agreed that the Plan may move forward without such provision and will not otherwise be subject to the stay,” the UCC added.
The Committee noted that Voyager is working with Binance.US to move forward with the plan as soon as possible once the stipulation is approved by the U.S. District Court.
Earlier, the Voyager-Binance.US deal was halted by District Judge Jennifer Rearden following the U.S. government’s request for an emergency stay. This came after bankruptcy Judge Michael Wiles of the New York Southern Bankruptcy Court had approved the sale over the government’s objections.
U.S. Regulators Attempt to Block Voyager’s Plan
The United States Securities and Exchange Commission (SEC) had also attempted to stop Binance.US from completing its $1 billion deal for Voyager. The agency filed a limited objection to the plan in January but was also later dismissed by Judge Wiles, who cited the impact the halt could have on Voyager’s customers.
Several U.S. regulators, including the Federal Trade Commission, the Texas State Securities Board, and the Texas Department of Banking, have also tried to block the deal on separate grounds.
Voyager, which filed for Chapter 11 bankruptcy in July, secured court approval to sell its assets to Binance.US for roughly $1 billion in January. As part of the purchase agreement, the crypto lender will receive a $20 million cash payment and transfer its customers to Binance.US. Voyager estimates that customers will recover 51% of their pre-bankruptcy assets if the deal is eventually completed.
