Voyager Digital's $1 Billion Asset Sale to Binance.US Gains Initial Approval

Initial Court Approval for Voyager's Sale

Voyager Digital, a bankrupt crypto lender, has received preliminary court approval for a proposed $1 billion sale of its assets to Binance.US. The approval allows Voyager to proceed with an asset purchase agreement and to seek creditor votes on the sale. However, the transaction requires final approval in a future court hearing.

Addressing National Security Concerns

The deal's progression is contingent on a U.S. national security review by the Committee on Foreign Investment in the United States (CFIUS). Voyager has pledged to cooperate with Binance and their legal teams to address any potential security concerns. This review may impact the transaction's completion timeline and terms.

Transaction Details and Customer Impact

The Binance deal involves a $20 million cash payment and aims to transfer Voyager's customers to Binance.US's crypto exchange. This would enable customers to withdraw their funds for the first time since Voyager's bankruptcy filing, potentially recovering 51% of their deposits. If CFIUS opposes the transaction, customers may face lower payouts, as Voyager would have to use its existing crypto holdings to repay them.

Regulatory and Historical Context

Regulatory scrutiny has intensified, with CFIUS often blocking Chinese investments in the U.S. due to security concerns. Although Binance is led by Changpeng Zhao, a Chinese-born Canadian, it operates without a permanent headquarters. The company is also under investigation for money laundering by U.S. authorities. Despite opposition from the U.S. Securities Exchange Commission and state regulators, the court has permitted Voyager to move forward, allowing those parties to contest final approval later.

Voyager's bankruptcy followed a market collapse triggered by the crash of major crypto tokens TerraUSD and Luna. An earlier plan to sell assets to FTX Trading failed when FTX declared bankruptcy in November, amid withdrawals and fraud allegations leading to the arrest of its founder.