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U.S. federal authorities are reportedly challenging the recent court approval of the takeover deal between Binance.US and Voyager Digital. Authorities are said to be primarily concerned with the protections offered to liquidators of bankrupt companies, which, as the SEC has claimed in its previous dissent, would allow them to violate securities laws.
US Authorities Dispute Acquisition Deal Between Binance.US and Voyager Digital
The $1 billion takeover deal between Binance.US and Voyager Crypto has faced strong opposition from U.S. regulators since it was announced in December. Finally, on March 7, the ordeal appeared to be over, as the court approved the agreement and said it would not allow the SEC to target the liquidators in charge of Voyager’s restructuring.
Despite the progress, US authorities are said to intend to block some aspects of the agreement. The Justice Department objected to granting protections to executors of the restructuring plan, and a hearing on the matter is scheduled for Wednesday, according to a report Tuesday.
Previously, the SEC claimed that bankruptcy protection was too broad and would actually allow Voyager to violate securities laws as it executed its bankruptcy exit plan. The New York Attorney General also opposed the agreement in late February on the grounds that the bankrupt company was illegally serving customers in the state because it did not have the required licenses, and claimed the deal would harm New York residents because Binance .US takes several months to obtain the necessary approvals.
Voyager’s Rocky Bankruptcy
While by definition no bankruptcy can be described as smooth sailing, Voyager Digital has faced an unusually high number of setbacks since filing for protection last summer. While the company considered the initial offer “not serious,” its fortunes appeared to change in August when it emerged that various companies were seeking to acquire its assets.
It turns out that the winning bid was FTX, which went on an “acquisition spree” after many companies filed for bankruptcy following the collapse of LUNA in May. The $1.3 billion deal fell through after Sam Bankman-Fried’s company itself filed for bankruptcy in November.
While Voyager now appears closer than ever to finding and executing a way out of bankruptcy, the fight hasn’t been won yet. While the SEC and New York regulators appear willing to back down in the face of some of their objections, the bankrupt company now also faces an investigation by the FTC for “deceptively deceiving the public,” as recently reported. and unfair cryptocurrency marketing”.
Do you think Voyager should receive full bankruptcy protection amid its restructuring efforts? Let us know in the comments below.
about the author
Tim Fries is the co-founder of The tokenist. He holds a Bachelor of Science degree. BS in Mechanical Engineering from the University of Michigan and MBA from the University of Chicago Booth School of Business. Tim was a Senior Associate in the investment team of RW Baird’s US Private Equity division and co-founder of Protective Technologies Capital, an investment firm focused on sensing, protection and control solutions.
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