A very big legal battle appears to be on its way to being won by Binance.US, as it has managed to overcome a major legal hurdle in its attempt to acquire the assets of the bankrupt, Voyager Digital, after Michael Wiles, a bankruptcy judge in the Southern District of New York, rejected various objections to the proposed acquisition.
The deal is expected to be worth more than $1 billion.
However, Binance.US may need to clear a number of other hurdles that regulators will attempt to put up during the legal process before the deal is finalized.
Voyager’s VGX token surged over 8% in the minutes following the decision.
They will almost recover 2/3 of their holdings
Binance.US’s plan had been supported by 97% of Voyager’s creditors, as they see this as a way to regain almost three-quarters of their holdings in Voyager. Voyager’s lawyers estimate that the creditors will potentially be able to make a recovery of 73% of their holdings, up from the previously estimated 51%.
Opposing arguments collapse
Other obstacles presented in court to prevent the deal from being completed, which were put forward mainly by regulators, appear to be collapsing one after another.
The judge ultimately found that many of these objections either did not rest on a strong argument or would have unnecessarily bogged down the process.
“If the government wants to assert that Voyager’s sale of VGX tokens was a securities offering, it should have already done so,” the judge said of a statement by SEC counsel, namely that Voyager’s proposed sale to Binance.US potentially has ties to the securities laws.
However, according to the evidence presented, regulators did not choose to take legal action on this issue, so Wiles had “no choice” but to rule that the transactions were perfectly legal, as he explained.
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