As part of its expansion plan, Binance.US has received approval from the US Bankruptcy Court to acquire the assets of the now-collapsed Voyager Digital. The deal, reportedly valued at over $1 billion, will allow Binance.US to expand its operations in the competitive crypto industry.
Bankruptcy Judge Okays Voyager Digital Deal
Per reports, US Bankruptcy Judge Michael Wiles has given Binance.US the green light to purchase the assets of the now-insolvent crypto lending platform. This comes after four days of testimony involving Voyager Digital and the US Securities and Exchange Commission (SEC).
According to Bloomberg, the bankruptcy judge dismissed the claims by the regulator that the movement of funds from Voyager to Binance.US violated the securities laws of the United States. Wiles noted that he would allow the sale of Voyager to Binance.US, enabling the exchange to pay back assets to the affected Voyager clients by reimbursing them close to 73% of their losses after the crypto lender filed for bankruptcy.
During the hearing, several witnesses testified before the court, debating complex issues like whether transferring assets to Binance.US is in the creditor’s best interest rather than liquidation. However, the judge noted that the initial objection by the SEC needed to be more practical.
According to sources familiar with the latest development, the court explained that the concerns raised by the financial watchdog failed to override the importance of proceeding with the crypto lender’s restructuring plan. Furthermore, Wiles reportedly revealed that no US regulatory agency could prosecute Voyager’s executives regarding the future issuance of bankruptcy tokens.
SEC’s Relentless Pushbacks
Since the start of the year, the SEC, under the leadership of Gary Gensler, has been accused of attempting to undermine the crypto industry with its hardline approach to enforcement. Critics of the regulator’s actions believe that the commission’s aggressive regulatory scrutiny and enforcement against crypto firms are hindering innovation and limiting the growth of the digital asset industry.
Many believe the SEC is unjustly and disproportionately targeting crypto companies and individuals in its renewed attempts to oversee the sector’s regulation. Moreover, critics say the commission’s rejection of a Bitcoin exchange-traded fund (ETF) launch and the numerous lawsuits against key players in the crypto space point to a grand scheme to silence the industry.
The ongoing legal tussle between Ripple Labs and the SEC in December 2020 is the longest court case in the industry’s history. However, supporters of the SEC action believe that an increased regulatory move in the emerging industry is necessary to ensure user protection and prevent fraud.
According to them, the commission’s recent actions will benefit the industry shortly.