Bankrupt Crypto Lender's $1 Billion Asset Sale to Binance.US Approved by U.S. Go...

Bankrupt crypto lender, Voyager Digital Holdings, has successfully negotiated a deal with the United States federal government, enabling its $1 billion asset sale to Binance.US to proceed. This agreement marks a significant milestone for Voyager as it works to sell its assets to the U.S. subsidiary of Binance, one of the world’s largest cryptocurrency exchanges.

New York District Court Filing Paves the Way

On April 19th, a New York District Court filing brought together Voyager, the Official Committee of Unsecured Creditors, and the U.S. government. All parties agreed to advance the Binance acquisition of Voyager’s digital assets as planned. 

The filing also indicated that the government could continue pursuing an appeal on exculpation provisions, which allegedly protect Voyager from specific legal liabilities.

The Official Committee of Unsecured Creditors tweeted on April 19th that all parties had agreed on the resolution. That is, provided that the “appeals will continue concerning the Plan’s exculpation provision.”

Previous Attempts to Halt the Crypto Lender Deal

Before this agreement, the Binance.US deal was temporarily suspended by a federal judge following the U.S. government’s request for an emergency stay. Both Voyager and the Committee contested the emergency stay application, but Judge Jennifer Rearden granted the U.S. government’s request, temporarily halting the proceedings with a March 27th court order.

U.S. regulators made multiple efforts to stop the deal after it received approval from U.S. bankruptcy judge Michael Wiles on March 7th. Judge Wiles noted that delaying the deal would be detrimental to Voyager’s former clients, awaiting funds. 

However, the government requested on March 14th to postpone the bankruptcy plan by two weeks, accusing the plan of “immunizing fraud, theft, or tax avoidance.” Judge Wiles denied the motion, stating that the allegations were “exaggerating and mischaracterizing.”

A court filing on February 28th disclosed that 97% of the 61,300 Voyager account holders supported the deal with Binance. U.S. This overwhelming majority demonstrated the desire for a resolution to the ongoing bankruptcy proceedings.

Voyager’s Efforts to Redistribute Funds to Creditors

Since filing for Chapter 11 bankruptcy in July, Voyager has proactively developed a plan to redistribute funds to its creditors. 

This latest agreement with the U.S. government marks a significant step forward in this process, paving the way for the completion of the $1 billion asset sale to Binance.US. It also brings the crypto lender closer to fulfilling its obligations to its creditors.

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