Voyager secures $1B deal with Binance.US following successful agreement with Feds

Bankrupt Voyager Digital Holdings moves forward with $1 billion sale to Binance.US after deal with U.S. government

Voyager Digital Holdings, a bankrupt cryptocurrency lender, has struck a deal with the United States federal government that allows it to move forward with its $1 billion plan to sell its assets to Binance.US. The deal was sealed on April 19, following an agreement between Voyager, the Official Committee of Unsecured Creditors, and the U.S. government. Here’s what you need to know about the deal:

The deal and the legal hurdles

The filing in the New York District Court stated that the government can continue to work on an appeal on exculpation provisions. These are conditions that the government claims allow Voyager to be protected from certain legal liabilities. The Voyager Official Committee of Unsecured Creditors confirmed in a series of tweets on April 19 that all parties agreed on the resolution, with the exception of appeals that will continue with respect to the Plan’s exculpation provision. Previously, the deal with Binance.US was temporarily halted by a federal judge after a request by the U.S. government for an emergency stay. Despite Voyager and the Committee both challenging the emergency stay application, Judge Jennifer Rearden granted the U.S. government’s request to temporarily suspend the proceedings in a March 27 court order. U.S. regulators have made several attempts to halt the deal since it was granted approval to proceed on March 7 by U.S. bankruptcy judge Michael Wiles. He noted that delaying the deal will harm the interests of Voyager’s former clients waiting to receive funds. A week after it was approved, the government requested on March 14 to delay the bankruptcy plan by two weeks, accusing it of “immunizing fraud, theft, or tax avoidance.” However, Judge Wiles denied the motion, stating that the accusations were “exaggerating and mischaracterizing.”

What’s next for Voyager?

Voyager has been actively taking steps to coordinate a plan for the redistribution of funds to creditors since it filed for Chapter 11 bankruptcy in July 2022. A Feb. 28 court filing revealed that 97% of the 61,300 Voyager account holders were in favor of the deal with Binance.US. With the latest deal with the U.S. government, Voyager’s $1 billion sale of cryptocurrencies to Binance.US can now move forward as planned. Despite the legal challenges, Voyager is taking significant steps to ensure that its creditors will receive their funds as soon as possible.

Bankrupt cryptocurrency lender Voyager Digital Holdings has recently announced that it has struck a deal with the United States federal government that moves forward a $1 billion plan, allowing Voyager to sell its assets to the U.S. arm of Binance.

This deal has been in the works for several months now, and on April 19, an official filing in a New York District Court was made, announcing that Voyager, the Official Committee of Unsecured Creditors, and the U.S. government have all agreed that the deal for Binance to acquire Voyager’s digital assets could move forward as planned.

This agreement is a significant win for Voyager, as the deal with Binance.US was temporarily halted by a federal judge after a request by the U.S. government for an emergency stay. Despite Voyager and the Committee both challenging the emergency stay application, Judge Jennifer Rearden granted the U.S. government’s request to temporarily suspend the proceedings in a March 27 court order.

U.S. regulators have made several attempts to halt the deal ever since it was granted approval to proceed on March 7 by U.S. bankruptcy judge Michael Wiles who noted that delaying the deal will harm the interests of Voyager’s former clients waiting to receive funds. A week after it was approved, the government requested on March 14 to delay the bankruptcy plan by two weeks. It accused the bankruptcy plan of “immunizing fraud, theft or tax avoidance,” however, the motion was denied by Judge Wiles who said the accusations were “exaggerating and mischaracterizing.”

Despite the ongoing legal hurdles, Voyager is optimistic about the future and is actively taking steps to coordinate a plan for the redistribution of funds to creditors since it filed for Chapter 11 bankruptcy in July 2022. The Voyager Official Committee of Unsecured Creditors stated in a series of tweets on April 19 that all parties agreed on the resolution provided that the “appeals will continue with respect to the Plan’s exculpation provision.”

Moreover, a Feb. 28 court filing revealed that 97% of the 61,300 Voyager account holders were in favor of the deal with Binance.US, highlighting the overwhelming support for the move.