Voyager Digital Holdings, a bankrupt cryptocurrency lender, has reached an agreement with the US government that advances a $1 billion plan that would let Voyager transfer its assets to Binance’s US division.
The US government, the committee of the insolvent lender’s creditors, and the lender itself struck an agreement for the deal with Binance to proceed as scheduled, according to a filing made on April 19 in a New York federal court.
In the brief, it is said that the government may continue to pursue an appeal against the so-called exculpation requirements, which it describes as the prerequisites for protecting Voyager from particular legal consequences.
A federal judge earlier delayed the agreement when the US government asked for an immediate suspension. The US Department of Justice (DOJ) appealed Judge Michael Wiles’ judgment to let Binance’s US subsidiary purchase the assets of Voyager Digital at the beginning of March.
Several regulatory bodies, including the US Securities and Exchange Commission (SEC), strongly opposed the merger. In February, the SEC objected to the sale of Voyager because Binance’s US branch would be operating an unregistered stock exchange in violation of US securities regulations.
Since U.S. bankruptcy judge Michael Wiles gave the sale the go-ahead on March 7, U.S. officials have made repeated attempts to block it. Wiles pointed out that postponing the agreement will affect the interests of Voyager’s former clients who are waiting to receive money.
On March 14, one week after that, the administration asked for a two-week postponement in the bankruptcy plan. The request claimed that the bankruptcy plan “immunized fraud, theft, or tax avoidance,” but Judge Wiles rejected it because the claims were “exaggerating and mischaracterizing.”
According to a court document filed on February 28, 61,300 Voyager account holders, or 97% of them, approved the agreement with Binance US.
Since declaring Chapter 11 bankruptcy in July, Voyager has been actively working to arrange a strategy for redistributing money to creditors.
Voyager presently owns stablecoins and other digital currencies valued at $266.7 million, according to DeBank. One of these is the Shiba Inu token, which is still the third-largest asset in Voyager’s wallet even though its value has plummeted by 50% as a result of recent sales by the insolvent broker. The wallet continues to contain more than 3.1 trillion SHIB.
Significant progress has been made in the space of cryptocurrency with Binance US’s acquisition of Voyager. One of the largest cryptocurrency exchanges in the world, Binance US, has been growing its market share in the United States. Binance US’s market position will be further strengthened by the acquisition of Voyager and its digital assets.
