On Wednesday, an attorney for the defunct cryptocurrency lender Voyager Digital claimed that the company intends to close down the cryptocurrency exchange Binance.US acquisition transaction with Voyager, worth $ 1.02 billion, is proceeding as planned. According to statements (1) made by attorneys for Voyager, 97% of the votes cast have been positive toward the proposals.
On Wednesday, February 23, at 4:00 p.m. Eastern Time, the deadline for voting on the plan or expressing opposition to it will close. In front of the bankruptcy court Michael Wiles, Voyager's attorney, Allyson Smith of Kirkland & Ellis, stated the following:
As of last night, an overwhelming majority of creditors (97%) still voted to accept the plan.
Smith said, "We are on schedule, don't anticipate any roadblocks, and expect to be before Your Honor again next Thursday." This was said with the goal of confirming the plan by March 2.
In July 2022, cryptocurrency lender Voyager Digital revealed it would close its doors. In November 2022, the cryptocurrency exchange FTX went out of business, even though Voyager was negotiating a contract with it. In the latter part of December 2022, Binance.US entered the fray with its all-encompassing offer.
The Agreement Concerning the United States
The United States SEC has recently increased the pressure it applies on cryptocurrency exchanges and businesses based in the country. The Securities and Exchange Commission has expressed opposition to the proposed acquisition of Voyager Digital by Binance US for one billion dollars.
The SEC has determined that certain aspects of the proposed merger between Binance.US and Voyager may violate the law, depending on how the plan intends to reimburse Voyager's previous clients. The SEC made the following observation in its submission concerning Voyager Digital's VGX token:
"The exchanges in crypto assets required to facilitate the realignment, the diffusion of such holdings to Customer Accounts, may infringe the restriction in Section 5 of the Securities Act of 1933 against (1) the unlicensed offer, sale, or distribution after the sale of securities.
This provision prohibits rebalancing, which involves redistributing such assets to Account Holders. It is up to the debtors to provide convincing evidence that the plan's contents can be implemented and do not go against any laws now in effect.
In addition, the SEC referred to various reports from the media that mentioned Binance.
They contend that Voyager violated the law by providing its consumers in the country with services. The accusations made by NYDFS state that "despite that none of the Borrowers is registered in New York, the Department is conscious of accusations and other evidence saying that a number of the Debtors may well have managed and maybe still doing so in New York in contravention of Applicable Law"
In the past, Voyager has maintained that the transaction with Binance.US will favor the company's creditors. The cryptocurrency lender referred to the claims made by NYDFS as "hypocritical," citing that authorities are placing restrictions on the capacity to distribute cryptocurrencies.
