Voyager Allowed to Sell Crypto Client Accounts to Binance

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(Bloomberg) — Voyager Digital Ltd. won court approval to sell its crypto platform to Binance.US for $20 million as part of Voyagers’ liquidation plan.

Under the terms of the deal, approximately $1 billion in assets Voyager holds on behalf of its clients would be taken over by Binance, which would then give account holders the option to cash out. The deal cannot be completed until U.S. Bankruptcy Judge Michael E. Wiles approves the related bankruptcy liquidation plan.

Customers will have the right to vote on Binance’s deal in the coming weeks when they are asked to consider supporting the liquidation plan, Voyager attorney Christine A. Okike told a hearing held by phone on Tuesday.

Wiles dismissed objections from federal regulators and a handful of states, who questioned whether Binance was financially stable enough to complete the proposed transaction and how the company would fulfill its commitment to cash out customers. Once the minor wording changes are made, Wiles said he will sign a final order allowing Voyager to enter into a contract with Binance and send creditors an outline of the agreement and liquidation plan for a vote.

The approval brings Voyager one step closer to closure after being one of the first victims of the steep decline in cryptocurrency values ​​that began earlier this year.

Voyager was founded in 2018 as a crypto-trading platform and has grown rapidly, peaking at 3.5 million users and over $5.9 billion in cryptocurrency assets, according to court records. It currently has around 1.2 million customers and $1 billion in assets, which are frozen on the platform until the bankruptcy filing is resolved.

The company originally had a deal to sell its platform to FTX which would have netted Voyager around $51 million in cash, before that crypto company filed for bankruptcy of its own amid fraud allegations. After the FTX deal fell through, Binance made its offer, which would fetch $20 million.

Bankruptcy is Voyager Digital Holdings Inc., 22-10943, US Bankruptcy Court for the Southern District of New York (Manhattan).

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