- Bankrupt crypto lender Voyager Digital Holdings reached an agreement with the United States federal government to be able to complete the sale of its assets to Binance.US.
- The Federal Trade Commission (FTC) had opposed this purchase on the grounds that the deal could unlawfully shield the company from fraud liability.
On April 19, Bankrupt crypto lender Voyager Digital Holdings has reached an agreement with the United States federal government that would allow the firm to sell its assets to Binance.US.
For those who may not remember, Voyager Digital filed for bankruptcy in July 2022. It was, in fact, one of the tokens that fell following the collapse of TerraUSD and Luna.
In accordance with the crypto firm, had significant exposure to the failed fund Three Arrows Capital. In September 2022, Voyager Digital had reached an agreement with FTX to buy its assets, however this purchase was frustrated because Texas regulators opposed the purchase and some time later, the crypto exchange declared bankruptcy. A few months later.
After the deal fell through, Voyager bet on Binance.US, the US arm of Binance. The value of the agreement was approximately US$1.022 million. However, while 97% of Voyager account holders supported the deal, regulators raised concerns.
Voyager Digital, for its part, is under scrutiny by regulators. The Federal Trade Commission (FTC) alleges that the settlement could unlawfully shield the company from fraud liability.
Voyager reaches an agreement with the United States government
On Wednesday, Voyager’s Official Committee of Unsecured Creditors (UCC) shared on Twitter that “Voyager, the UCC and the Government have reached a resolution that will allow the plan to move forward and become effective shortly.”
According to his thread on Twitter, “The resolution is incorporated into a joint provision that provides that appeals will continue with respect to the plan’s exculpation provision.”.
Hence the US government has agreed to let the Binance.US acquisition plan go forward “without such provision and will not otherwise be subject to the suspension.”
According to Reuters, Voyager’s lawyer, Joshua Sussberg, explained that the transaction with Binance includes a cash payment of $20 million, as well as the agreement to move the wallets of Voyager clients to Binance.US.
It is important to mention that, If the deal goes through, Voyager customers would be able for the first time since July 2022 to access their assets and withdraw them if they wish.However, the recovery will not be 100%.
According to the report received by ReutersVoyager estimates that the recovery will be approximately 51% of the value of your deposits at the time of the bankruptcy filing and, in a scenario where the Voyager – Binance.US transaction is prevented, the refund clients will receive will be even less.
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