Voyager Digital, which has recently gone bankrupt, could be saved. The judge, on its bankruptcy case, has given permission to sell its assets to Binance. However, the US DOJ seems to be against it as it challenges Voyager’s sale to Binance. The DOJ filed this appeal a day after the Judge passed its verdict on the case. If Binance US acquires Voyager, the deal will be worth billions and might also be beneficial for the company’s creditors.
The US DOJ is against the sale
While the judge on the case is okay with approving the sale of Voyager Digital assets to Binance, the US SEC and many state regulators are strictly against it. Why? The SEC has been against Binance because they say that the exchange might be violating federal laws by operating an unregistered securities exchange in the US. However, the judge wasn’t moved much by SEC’s argument as, according to them, the bankruptcy code “doesn’t contemplate an endless period of time.”
The judge here is looking at the bigger picture. Binance purchasing Voyager Digital’s assets will help the creditors as they will be able to get their funds back. At present, there are many users who have lost access to their entire investments and savings because of bankruptcy. While the SEC and DOJ should be more concerned with helping the users get back their money, their focus is completely different.
What happens if the sale goes through?
If this sale happens and Binance acquires the assets of Voyager Digital, then the expected net recovery for customers is about 73% of their total assets. So, if someone had $100 in their accounts, then they would receive $73. Before this, FTX was trying to acquire Voyager and was also the top bidder, but it also filed for its own bankruptcy in November.
Now, if Voyager doesn’t go through the sale or the authorities are able to convince the judge to change his verdict, then Voyager has the option to liquidate its assets to return customer funds. However, in this method, the recovery amount will be much less than what Binance is offering.
What are your thoughts as the US DOJ challenges sale of Voyager’s sale to Binance? And do you think the judge will change its verdit? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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