• Binance-Voyager deal gets initial court approval despite SEC objections.
• Judge Michael Wiles approves the disclosure statements and asks attorneys to revise proposed order before giving final approval.
• Voyager counsel Joshua Sussberg said CFIUS would scrutinize foreign investments to determine national security risks.
The Binance-Voyager deal received initial court approval from the U.S. bankruptcy court for the Southern District of New York despite objections from the Securities and Exchange Commission (SEC). Judge Michael Wiles approved the disclosure statements that explained the various aspects of the deal, however, he asked the attorneys working on the deal to revise the proposed order before he gives final approval.
As part of the proposed deal, Voyager will receive $20 million in cash from Binance and will transfer user accounts to the Binance.US crypto exchange. This would enable Voyager customers to withdraw 51% of their deposits at the time of the bankruptcy declaration. In addition, Voyager counsel Joshua Sussberg said that the Committee on Foreign Investment in the United States (CFIUS) will scrutinize foreign investments in U.S. firms to determine national security risks. If CFIUS blocks the deal, the lender will have to repay customers with its crypto assets at hand, which would result in lower payouts for Voyager users.
While Judge Wiles gave the initial go-ahead to the deal, he still asked Voyager to seek the votes of all its creditors on the sale of its $1 billion assets to Binance. Once the creditors vote and the proposed order is revised, the deal will be finalized at a future court hearing. Until then, the SEC, CFIUS and New Jersey regulators will be allowed to raise objections to the final approval of the deal.
This proposed deal is an important step for both Binance and Voyager as it could help the crypto exchange gain a larger share of the crypto market in the United States. Binance will be able to offer Voyager customers access to its platform, while Voyager will be able to access a larger customer base. Ultimately, both companies will benefit from the deal, as it will help them grow their customer base and expand their presence in the crypto market.
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