The sale will allow customers to recover 51% of the value of their deposits at the time of the bankruptcy filing for cryptocurrency lender Voyager Digital
Bankrupt cryptocurrency lender Voyager Digital received initial court approval to sell its assets to Binance.US for $1 billion.
U.S. Bankruptcy Judge Michael Wiles in New York allowed Voyager to enter into an asset purchase agreement with Binance.US.
According to Voyager’s attorney Joshua Sassberg, the Binance transaction includes a $20 million cash payment and an agreement to transfer Voyager customers to the crypto exchange Binance.US. Customers will then be able to withdraw funds for the first time since July.
Voyager estimates that the sale will allow customers to recover 51 percent of the value of their deposits at the time of Voyager’s bankruptcy filing.
According to Sussberg, if U.S. regulators block the transaction, Voyager will be forced to return the cryptocurrency it has to customers, resulting in lower payouts for Voyager users.
Binance is owned by Changpeng Zhao, a Canadian citizen of Chinese descent, and has no permanent headquarters. The company has been the subject of a money-laundering investigation by the U.S. Attorney’s Office. Binance.US, based in Palo Alto, California, said its separate U.S. exchange is “completely independent” from the main Binance platform.