Voyager Digital, a publicly-traded cryptocurrency brokerage, and Binance US have reached a resolution with the US government and the Unsecured Creditors Committee (UCC) that will allow its bankruptcy plan to move forward.
The resolution comes after the US Department of Justice appealed a court order approving Voyager’s bankruptcy plan, which created a new hurdle for the crypto lender’s plan to sell its assets and transfer its customers to Binance.US in a deal valued at $1.3 billion.
Green Light For Binance And Voyager
According to the announcement, the resolution is embodied in a joint stipulation that provides that the appeals will continue concerning the Plan’s exculpation provision. However, the government has agreed that the plan may move forward without such provision and will not otherwise be subject to the stay.
Voyager and the UCC are now working with Binance.US to move forward as quickly as possible once this stipulation is approved by the District Court.
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The fact that the Plan is moving forward without the exculpation provision means that Voyager’s directors and officers will not be granted such protection. This decision could have implications for the individuals involved, as they could potentially face legal claims for any actions taken during the bankruptcy process.
In addition, it is worth noting that the decision to move forward without the exculpation provision does not necessarily mean that the directors and officers will be held liable for any actions taken during the bankruptcy process.
The provision would have provided them with an additional layer of protection, but they will still be subject to legal scrutiny and could be held liable if they are found to have acted improperly.
Despite this, this development brings much-needed clarity and certainty to the situation, which had been causing concern for Voyager’s 1.7 million users. The acquisition by Binance.US is expected to provide users with access to a wider range of trading pairs and liquidity, as well as the ability to earn interest on their cryptocurrency holdings.
The two platforms would be integrated into phases, starting with Voyager’s integration into the Binance.US platform, followed by Binance.US’s integration into the Voyager platform. This partnership would give users of both platforms access to a wider range of trading pairs and liquidity, as well as the ability to earn interest on their cryptocurrency holdings.
Voyager And Binance.US Overcome Regulatory Hurdles
At the end of 2021, Voyager Digital had billions of dollars worth of cryptocurrency on its platform. However, a broader market downturn and a series of bad bets, including investments made to Three Arrows Capital and Alameda Research, chipped away at the firm’s available capital. This led to the company’s bankruptcy filing, which left many of its users concerned about the fate of their assets.
In December 2022, Voyager Digital announced that Binance.US had won a second bidding process after FTX’s bankruptcy filing. This development paved the way for a resolution for the platform’s 1.7 million users who were left in limbo after Voyager’s bankruptcy filing in early 2022.
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The bidding process was initiated by Voyager Digital to sell its assets and transfer its customers to another platform. In addition, the acquisition by Binance.US is valued at $1.3 billion, and the platform has committed to honoring all of Voyager’s obligations to its customers.
Overall, the resolution reached by Voyager Digital, the UCC, and the government allows the company’s bankruptcy plan to move forward and paves the way for its acquisition by Binance.US.
Featured image from Unsplash, chart from TradingView.com