Binance.US Gets Green Signal to Acquire Voyager From US Court
Cryptocurrency lending platform Voyager Digital has received initial court approval for the $1.02 billion acquisition deal of its assets involving Binance.US. The United States Bankruptcy Court for the Southern District of New York gave Voyaver the green light for the deal, according to a report by Reuters. However, Judge Michael Wiles ruled that the cryptocurrency lender must seek a go-ahead from its creditor. Despite the approval, Reuters reported that the acquisition won’t manifest until another court hearing. The deal was halted after the United States Securities and Exchange Commission (SEC) filed a limited objection against the deal. In a filing, the SEC questioned the lack of proper information about the acquisition and asked Binance.US to provide how it has the financial capacity to carry out a deal of such magnitude. Further, the SEC raised concerns about the safety of users’ assets under the custody of the U.S. organ of Binance. The concerns emanated about the mismanagement of users’ funds by the bankrupt cryptocurrency exchange, FTX. The recent approval by the bankruptcy court surfaced amid a national security inquest about Voyager. Recall that last December, Committee on Foreign Investment in the United States (CFIUS) filed a court notice revealing that any transactions by Voyager might incur a review from its end. Therefore, resulting in the blockage or delay of the Binance.US deal. The organization is responsible for detecting threats to national security posed by foreign investments or takeovers involving U.S. companies. Presently, the committee is looking into the deal to determine if it poses any threat to the national security of the U.S. If the CFIUS sees justification for its concerns, it has the jurisdictional power to block the takeover deal. The attorney for Voyager, Joshua Sussberg, will address any issue from CFIUS that can obstruct the deal’s completion. In a court hearing, the attorney responded to questions from the committee to clarify the deal. As Sussberg revealed, Voyager is working with Binance and its legal team to attend to the investigation and request that the acquisition goes forward. Voyager’s acquisition by Binance.US is facing uncertainty following the SEC’s opposition. Nevertheless, the recent update could ease tensions for Binance.US as it moves to acquire Voyager Digital. You may also like: SEC Opposes Voyager’s Acquisition by Binance.US – Here Are the Reasons Binance.US to Buy Bankrupt Crypto Lender Voyager’s Assets for $1.02 Billion
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Text source: DailyCoin.com
