Last Updated: 8 March 2023
Binance.US, the American subsidiary of Binance, has won the court approval to acquire Voyager Digital’s assets. The Southern District of New York bankruptcy judge, Michael Wiles, granted Binance.US the green light after four days of hearing, striking down the objections raised by the United States Securities and Exchanges Commission (SEC). The SEC’s objection was considered “vague” by the judge, and the commission failed to provide supporting evidence. Binance.US will be able to acquire Voyager’s assets for over $1 billion, and the deal could result in creditors recovering nearly 73% of their investment.
SEC’s objection and court ruling
In early January 2023, the SEC filed a limited objection to the acquisition, asking how the US crypto exchange could afford such a large deal and claiming that parts of the agreement violated federal laws. The regulatory authority also alleged that the exchange might have violated securities law. However, the judge struck down the SEC’s objection, stating that the commission had waited until the last minute to raise concerns and failed to provide supporting evidence.
In a statement on Twitter, Binance.US said that the acquisition was aimed at returning customers their cryptocurrency on the fastest timeline possible and empowering users to make their own decisions about their assets. The exchange also welcomed Voyager’s customers to Binance.US, promising the highest levels of service and support.
Impact on Voyager’s token
Binance.US’s legal victory has boosted Voyager’s token, VGX, which has surged by over 23% in the past hour, trading at $0.4905 at press time. The token’s 24-hour and seven-day chart shows an upward trend of nearly 26%.
While Binance.US has won the legal battle against the SEC, its troubles have not ended. The United States Committee on Foreign Investment (CFIUS) is investigating the Voyager and Binance.US deal, which could impact the acquisition’s completion. Binance.US has time till April 18, 2023, to complete the acquisition.
The ongoing scrutiny faced by Binance.US highlights the importance of thorough due diligence when making investment decisions. As a prudent investor, you must consider all relevant information and potential risks before investing. With Bitindex Prime or BitSignal, you can access a wealth of market research and analysis to help you make informed investment decisions.