Most Voyager Digital account holders have approved the acquisition of the bankrupt crypto lending firm by Binance US, the United States-based arm of the world’s largest crypto exchange.
According to court documents, 97% of account holders with claims against Voyager supported the Binance US restructuring plan, while only 3% rejected it.
The voters were separated into four groups, including those having account holder claims and three groups with “generic unsecured claims.” All four groups approved the plan.
Per a court filing on Feb. 28, out of the 61,300 account holders with claims, 59,183, or 97%, voted to support the acquisition.
Binance.US had agreed in December 2022 to buy Voyager’s assets for $1.02 billion. The Binance US bid aimed to return crypto to customers following court-approved disbursements and platform capabilities.
However, the Texas State Securities Board, the state’s Department of Banking, and the US Securities and Exchange Commission (SEC) objected to the proposal, citing inadequate disclosures and a potential breach of securities law.
The SEC claimed the plan was unconfirmable under the US Bankruptcy Code. At the same time, New York State alleged that Voyager, which filed for bankruptcy protection in July, was running an unlicensed business.
On Feb. 22, the Federal Trade Commission also opened an investigation into Voyager Digital for the “deceptive and unfair promotion of cryptocurrencies to the public.”
Despite the objections, creditors overwhelmingly supported the restructuring plan. James Murphy, a securities lawyer in Richmond, Virginia, said, “Any bankruptcy judge would like to approve a plan that attracts 97% support from creditors. But when you have government regulators coming in at the last minute to argue that aspects of the deal may be illegal—that’s quite a showstopper.”
Binance defends restructuring plan after SEC objection
A Binance US spokesman said the company was willing to supply missing data and would work with relevant parties to provide any requested information.
The spokesman explained that assets belonging to Binance US customers are always held on the platform in a 1:1 ratio and are fully protected.
He continued to say that they are excited to welcome Voyager users to Binance US and are happy that most of them have already supported their plan.
However, the SEC objected to the plan on Feb. 22, stating that Voyager needed to provide adequate information regarding the safety of assets and the control of customer wallets.
It also said the company failed to demonstrate that a provision to return frozen funds to investors could be made in compliance with federal securities laws. According to the commission, Voyager did not provide that information.
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