- The New York District Court has approved Binance’s billion-dollar deal to acquire Voyager.
- Voyager’s UCC had previously struck a deal with the U.S. govt. to settle all disputes and allow the deal.
- The deal is finally set to go through after facing multiple hurdles from regulators and the Justice Department.
Binance’s American arm is set to acquire Voyager Digital after the New York District Court approved the $1 billion deal earlier today. The approval for Binance US to take over the assets of the bankrupt crypto lender comes more than four months after the plan was initially announced in December last year.
The Voyager Official Committee of Unsecured Creditors took to Twitter earlier today to share the news of the approval. “Earlier this afternoon, the District Court entered an order approving the settlement,” the committee tweeted. The settlement mentioned in the tweet was reached just two days prior to the court’s approval.
In December 2022, Binance US made a $1.02 billion bid to acquire the assets of Voyager Digital, which at the time had been under bankruptcy proceedings for more than five months. Within two weeks of the bid, the U.S. Securities and Exchange Commission (SEC) filed an objection to the deal, questioning Binance US’ ability to fund the acquisition.
Despite the SEC’s attempt to stop the deal by alleging the potential violation of securities laws, a federal judge granted Binance US’ acquisition of Voyager Digital on March 7. However, the U.S. Department of Justice entered an emergency application to stay the deal on March 17, arguing that the deal may lead to potential fraud or tax avoidance.
On 19 April, Voyager and its Unsecured Creditors Committee (UCC) reached a settlement with the U.S. federal government to allow the acquisition deal to move forward. “The resolution is embodied in a joint stipulation providing that the appeals will continue with respect to the Plan’s exculpation provision,” the UCC stated.