Binance.US Gets Judge’s Approval to Buy Voyager Digital
Binance.US, the American subsidiary of the global crypto exchange Binance, received approval. From a New York judge to acquire the major crypto brokerage firm Voyager Digital despite objections from regulators.
The decision was made by the New York State Supreme Court Justice Andrew Borrok, who ruled in favor of Binance. U.S.’s acquisition of Voyager Digital.
The acquisition was initially announced in August 2021, with Binance.US agreeing to buy Voyager Digital for $1.2 billion worth of stocks and cash. Binance.US aims to use the acquisition to expand its existing product suite and provide users with a comprehensive trading experience.
However, the deal was met with regulatory objections from the New York State Department of Financial Services (NYDFS) over concerns about Binance’s compliance record. The NYDFS suspended Binance’s operations in New York in June 2021 following allegations of inadequate customer due diligence and Know Your Customer (KYC) protocols.
Investors, U.S. Regulators Couldn’t Block Sale Approval.
This ruling allows the company to come out of bankruptcy and pay back its customers. By “Steven Church” March 8, 2023, at 2:56 AM GMT+5Updated onMarch 8, 2023, at 3:26 AM GMT+5.
Voyager Digital Ltd. Binance has received court approval to sell to Binance.US, the U.S. arm of the world’s largest cryptocurrency exchange.
U.S. Bankruptcy Judge Michael Wiles says Voyager could capture about 73% of customer debt depending on the sale of Binance.US and where prices of various cryptocurrencies reach in the coming weeks. I said I would allow it to attempt to complete the associated payment plan. Attorneys for the U.S. Securities and Exchange Commission whose transactions and plans partially violate federal law.
Binance.US argued that it is an entirely separate entity from its parent company, Binance, and that it has its own regulatory and compliance measures in place. The company also vowed to make significant patches in its security protocols after the NYDFS’s suspension.
After months of back-and-forth, the judge ultimately ruled that there was a lack of evidence to support the NYDFS’s allegations against Binance. U.S. Therefore, the acquisition can proceed, potentially setting a precedent for the way regulators oversee future crypto mergers and acquisitions.
As per the deal, Voyager Digital shareholders will receive 33.5 million shares of Binance.US and $450 million in cash upon completion of the acquisition. The shares will be valued at $15 and locked up for three years.
Commenting on the ruling, Brian Brooks, CEO of Binance.US, said, “We are extremely pleased with the New York court’s decision, which affirms our commitment to robust legal and regulatory compliance while also expanding our product and service offerings for American customers.”
The acquisition could also help Binance.US compete with other US-based crypto exchanges such as Coinbase and Kraken. Voyager Digital, one of the major crypto brokerage firms in the U.S., offers commission-free trading and access to more than 60 digital assets.
Binance.US’s successful acquisition of Voyager Digital, despite regulatory objections, will likely have far-reaching implications for the U.S. crypto industry. It could pave the way for more mergers and acquisitions in the sector as long as companies can demonstrate compliance with regulatory requirements.