- Binance.US won the rights to acquire Voyager digital’s assets in the Southern District of New York court
- The judge presiding the case stated that SEC’s objection was “vague”
Binance.US – the American subsidiary of Binance – has defeated the United States Securities and Exchanges Commission (SEC). The American crypto exchange won the rights to acquire Voyager Digital’s assets, according to a report by Bloomberg. The bankruptcy judge of the Southern District of New York – Michael Wiles – gave the crypto exchange the green light after four days of the hearing. The judge struck down the claims made by the SEC.
US Judge rests case in the Binance.US vs SEC case
The commission had filed a limited objection to the acquisition in early January 2023. The main question of the commission was how the US crypto exchange was able to afford such a large deal. In addition, the regulatory authority claimed that parts of the deal violated federal laws, claiming that the exchange could have possibly violated securities law.
However, the judge deemed that the SEC’s objection was “vague”. Taking up the securities law violation, judge Wiles asserted that the commission failed to submit supporting evidence. In addition, the judge pointed out that the commission waited till the end minute to raise red flags, as per a report by Reuters.
With the approval, Binance.US will now be able to acquire Voyager’s assets for over $1 billion. Moreover, the passing of the deal could result in creditors making a nearly 73% recovery.
In a statement on Twitter, Binance.US said,
“Our goal has always been to return customers their cryptocurrency on the fastest timeline possible and empower users to make their own decisions about their own assets. We look forward to completing the transaction and welcoming Voyager customers to Binance.US where they can expect the highest levels of service and support.”
Notably, Binance.US is the second crypto firm to win the rights to acquire Voyager’s assets. The bid was initially won by now-bankrupt crypto-exchange – FTX. However, after its fallout, the crypto lender, which filed for bankruptcy in June 2022, held a second bidding round, with Binance.US emerging as the winner.
The latest court update has given a boost to Voyager’s token – VGX. According to CoinMarketCap, the token has surged by over 23% in just the past hour and was trading at $0.4905 at press time. In addition, the 24-hour and seven-day chart registered an upward trend of nearly 26%.
Source: CoinMarketCap
While Binance.US has won the battle against the SEC, its troubles have not ceased to exist. The United States Committee on Foreign Investment (CFIUS) is also investigating the Voyager and Binance.US deal. And, its review could have an impact on the completion of the deal given that Binance.US has time till April 18, 2023, to complete the acquisition.
