Last Updated on January 11, 2023 by Bitfinsider
Voyager Digital received court clearance to sell its crypto platform to Binance for $20 million as part of its bankruptcy strategy.
According to the terms of the agreement, Binance will take over around $1 billion in assets held by Voyager on behalf of consumers, giving account holders the opportunity to cash out. The transaction cannot be completed unless US Bankruptcy Judge Michael E. Wiles authorizes the bankruptcy liquidation plan.
Customers will be able to vote on the Binance transaction in the coming weeks when they are asked to consider backing the liquidation plan, according to Voyager lawyer Christine A. Okike during a telephone court hearing on Tuesday.
Wiles disregarded concerns from federal authorities and a few states that questioned whether Binance was financially healthy enough to complete the proposed deal and how the business would fulfill its promise to cash out clients. Wiles stated that after minor wording adjustments, he will issue a final order allowing Voyager to engage into a contract with Binance and to submit creditors a description of the arrangement and the liquidation plan for a vote.
The permission moves Voyager one step closer to closure after it became an early victim of this year’s sharp slump in crypto currency prices.
According to court filings, Voyager was formed in 2018 as a cryptocurrency trading platform and quickly grew to 3.5 million customers and more than $5.9 billion in bitcoin holdings. It presently has roughly 1.2 million customers and $1 billion in assets on the platform, which are blocked until the bankruptcy case is resolved.
The company previously had an agreement with FTX to sell its platform for around $51 million in cash, but that crypto firm filed for bankruptcy amid fraud charges. After the FTX acquisition fell through, Binance made an offer for $20 million.
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