Voyager Gets Green Light To Sell Customer Accounts


Binance.US got one step closer to fully acquiring Voyager Digital, a crypto company that went belly up recently. 

According to to a report by Reuters, Voyager Digital won preliminary court clearance for a potential $1 billion sale of its assets to Binance.US, and indicated that it will seek to hasten a US national security evaluation of the proposed agreement.

During a hearing on Tuesday afternoon, U.S. District Judge Michael Wiles of the bankruptcy court for the Southern District of New York approved necessary documentation outlining various features of the proposal to sell Voyager assets but requested that the order documents be amended before he certifies them.

SEC, Other Regulators Object To Proposed Deal

The deal between Binance.US and Voyager involves a $20 million cash settlement and a commitment to migrate Voyager’s clients to Binance.US’s crypto exchange, Voyager legal counsel Joshua Sussberg disclosed.

The $20 million deal is no loose change for both parties. On the receiving end, Binance would grow its market share among crypto exchanges and, if Voyager Digital customers agree to the deal, an increase in users for the platform. 

Image: The Daily Hodl

On the other hand, Voyager would have the cash needed to pay off some debts from its restructuring due to the nature of Chapter 11 bankruptcies. However, this deal can only be passed if both Wiles and Voyager’s creditors approve of the deal. 

The Securities and Exchange Commission (SEC), state authorities, the U.S. Trustee’s office, and private parties objected the proposed transaction.

The Committee on Foreign Investments in the United States has also stated that it will evaluate transactions carried out by the lender. The court stated that the panel’s concerns are actually irrelevant for today.

The agreement will not be finalized until a court hearing is held on or around March 2nd.

What Does This Mean For BNB?

BNB, the native token of the Binance exchange, would certainly pump up in price if all goes according to plan. Data from CoinGecko shows BNB rising 12% as major cryptos rally since the start of the year. 

BNB total market cap at $44 billion on the daily chart | Chart:

However, with Zhao also under fire for allegedly manipulating the price of BNB, we might see a slight flip in investor sentiment.

Dylan LeClair, an outspoken critic of Binance and a crypto analyst, also explored how the token seems to defy market dynamics, going as far as calling BNB “disconnected from reality.”

But this fear, uncertainty, and doubt seems to have no effect on BNB. With the token up a percent more in the past 24 hours, BNB’s rally might continue to create new highs. 

However, if CFIUS blocks or delays the acquisition and the FUD around BNB continues, the price of the token may tank along with the reputation of the company.

-Featured Image: Bitnation


Source link

Comments are closed.