A New York bankruptcy judge says Voyager Digital can sell its $1B+ worth of assets to Binance.US, overruling objections by the US SEC and state regulators
Binance.US first emerged as the winning bidder for Voyager’s assets in a proposed $1.022B bankruptcy sale, then received an earlier bankruptcy-court approval despite federal and state objections. Those objections sharpened when the SEC and NYDFS alleged the transaction involved unregistered securities, including Voyager’s VGX token.
First-order effects
Voyager can proceed with the court-approved sale process to Binance.US, while the SEC and state regulators lose this round of their effort to block it in bankruptcy court.
Binance.US gains judicial backing for its acquisition of Voyager’s assets, despite the regulators’ objections to the structure of the deal.
Second-order effects
The dispute moves beyond the bankruptcy judge’s approval: the U.S. government later secured a temporary halt to Voyager’s bankruptcy plan, showing that approval did not end the regulatory challenge.
Customers and creditors awaiting distributions remain exposed to the pace of the legal process, after Voyager had already been permitted to return $270M in customer cash deposits.
Third-order effects
Crypto-bankruptcy asset sales are becoming a test of whether bankruptcy courts can advance customer recoveries when securities regulators contest the underlying transaction.
If this pattern persists, platform acquisitions in distressed crypto will be shaped as much by regulatory defensibility as by the winning bid’s price.
The trend: Crypto insolvency is turning court-supervised asset sales into a battleground between creditor recovery plans and securities-regulation enforcement.
Looks like the SEC took two L's today. Originally they pushed back against Voyager's sale to Binance U.S. Grayscale ETF arguments ended positively. Lawyer comments say SEC can still deny for other reasons. Approval would help DCG's liq too as GBTC discount closes https://twitter.…
We are pleased the U.S. Bankruptcy Court for the Southern District of New York agrees with 97% of Voyager customers who voted that our plan provides the best path forward for Voyager users to re-take control of their assets. Our goal has always been to https://binance.us/... htt…
The only positive outcome of filing for chapter 11 is the bankruptcy courts told the SEC they have over stepped their bounds Congrats to Voyager Creditors and Binance US https://www.coindesk.com/...
Binance already preparing the KYC/AML mazes and training support staff on stalling everyone on their withdrawals. Voyagers are going to get REKT again. We warned you about voyager before it exploded. We know that you'll make the same mistake again. 😘 https://twitter.com/...
Vancouver crypto outfit Voyager Digital, infamous because, among other things, a British Columbia lawyer was its director and it's alleged to be a Ponzi in a U.S. lawsuit, sold its assets to Binance. The US SEC worked hard to stop it to protect investors everywhere. https://twitt…