In recent news, the defunct US crypto broker Voyager is set to sell its assets in a $1 billion deal with cryptocurrency exchange Binance.US. This transaction has been granted initial court approval, and details of the purchase agreement have been revealed, but a final decision will be made on March 2nd or shortly after. If executed, customers could receive up to a 51% capital return — so what does this mean for the crypto industry as a whole?
The news of the proposed deal between Binance.US and defunct crypto broker Voyager has generated a considerable frenzy in the financial markets as its estimated worth of approximately $1 billion further indicates the rising prominence the cryptocurrency market is gaining throughout the world. While crypto exchanges such as Binance.US offer services to their customers, it is quite apparent that currently, cryptocurrency brokers are trying to bridge the gap between those investors who are cautious about investing in volatile virtual assets, while offering regular banking-like options such as making withdrawals or deposits on behalf of its customers. However, despite this initial approval from the court, it will be interesting to see whether or not this proposed deal will actually come to fruition and further advance toward regulating and stabilizing this industry much more effectively.
Voyager to Sell Assets to Binance.US in $1 Billion Deal
Michael Wiles, U.S. Bankruptcy Judge in New York, has granted permission to Voyager to enter into an asset purchase agreement with the crypto exchange and to hold a vote among its creditors on the sale. This is likely due to the fact that voluntary restructuring plans have not been as effective at solving disputes between creditors, and as such a court-supervised agreement may be more beneficial for all parties involved.
Although there are several levels of approval and different steps before anything is considered final, this decision by Wiles could act as an important stepping stone towards further resolution in the specific exchange dispute.
Voyager was once one of the most popular cryptocurrency brokers in the US, but it had to shut down after facing numerous legal issues including accusations of fraud and misappropriation of funds. Now the company is ready to move forward with its asset sale following initial court approval granted this month.
The purchase agreement details that Binance.US will pay Voyager’s creditors and customers up to $1 billion in cash and digital currency assets. A court hearing is scheduled for March 2nd or shortly after where a decision on executing the asset sale will be made by a US bankruptcy judge.
If approved, customers should expect to get back at least 51% (or more) of their capital returned from Voyager’s liquidation proceedings — which means that at least half of their losses could be recovered if all goes according to plan. This would mark an important victory for customers who have been dealing with financial losses due to Voyager’s closure since last year.
Implications of the Deal for the Crypto Industry Overall
The implications of this deal extend far beyond just Voyager’s customers — it has potential implications for trading volumes and market activity across the entire cryptocurrency industry. With more exchanges entering into partnerships like these, it could create more opportunities for traders and investors as well as increase liquidity in digital currency markets overall. It also highlights some of the difficulties involved in regulating cryptocurrency exchange platforms, as well as risks associated with trading digital currency assets which can lead to significant losses if not managed properly.
What Will Happen to Voyager’s Assets?
The fate of this transaction lies in the hands of a US bankruptcy judge who will make his ruling on March 2nd or shortly after — only then will we know what will happen with Voyager’s assets and how much money customers can expect back from their investments in digital currency assets held by Voyager prior its closure last year. Until then, all eyes are on this upcoming court hearing that could determine whether or not Binance US succeeds in its acquisition bid and whether or not customers can recover some (or all) their money lost during the shutdown period last year.