[ad_1]
(Bloomberg) — Voyager Digital Ltd. has received court approval to sell its cryptocurrency platform to Binance.US for $20 million as part of its bankruptcy liquidation plan.
Under the terms of the transaction, approximately $1 billion worth of assets held by Voyager on behalf of its customers will be transferred to Binance, giving account holders the option to cash them out. The transaction will not close until U.S. Bankruptcy Judge Michael E. Wiles approves the related bankruptcy liquidation plan.
Voyager attorney Christine A. Okike said during a court hearing by phone on Tuesday that customers had the right to vote on Binance’s trade when asked to support a liquidation plan in the coming weeks. said to have
Wiles questioned whether Binance would be financially stable enough to complete the proposed transaction and how the company would live up to its promise to cash out customers. It has dismissed objections from regulators and a handful of states.Once minor wording changes are made, Wiles said Voyager would sign a deal with Binance and send creditors a summary of the deal and a liquidation plan for voting. He said he would sign a final order allowing him to do so.
Voyager, which was an early victim of the severe decline in the value of the cryptocurrency that began earlier this year, is one step closer to closing with the approval.
Voyager was founded in 2018 as a cryptocurrency trading platform and has grown rapidly to reach 3.5 million users and more than $5.9 billion in cryptocurrency assets, according to court records. He currently has about 1.2 million customers and his $1 billion in assets, frozen on the platform until the bankruptcy case is over.
The company originally struck a deal to sell its platform to FTX, which would give Voyager about $51 million in cash, but the crypto firm filed for bankruptcy amid fraud allegations. Did. After the FTX deal fell apart, Binance made an offer to bring her $20 million.
Bankruptcy is Voyager Digital Holdings, Inc., 22-10943, United States Bankruptcy Court in the Southern District of New York (Manhattan).
©2023 Bloomberg LP
[ad_2]
Source link
