Voyager’ customers, creditors approve assets sale to Binance

Plans to sell Voyager Digital’s assets to Binance US are “on track” after customers of the bankrupt crypto broker overwhelmingly voted in favor of the proposed restructuring plan.

Bankruptcy administration company Stretto disclosed that 97% of customers, representing 98% of the total claims, voted in favor of the proposal. Of those who participated in the voting, eligible participants were divided into four categories, one for “account holder claims” who represent over $500 million worth, and three for “general unsecured claims,” representing another $3 million.

The Toronto-based firm had around 100,000 creditors and between $1 billion to $10 billion in assets. The majority of Voyager’s creditors also voted to opt their claims into a “wind-down entity,” with 65% of Class 3 Ballots and 85% of “holders of claims or interests in the non-voting classes” voted to opt in.

Voyager attorneys will reveal further details following its upcoming court hearing on March 2, where it will seek court approval for the restructuring plan.

Despite this progress, US federal and state regulators have objected to Binance’s proposed purchase of Voyager Digital’s assets on the grounds that it may violate the country’s securities laws and registration rules.

The SEC warned that distributing Voyager’s VGX token as part of Binance US’s rescue plan may constitute the sale of an unregistered security. The agency also said the bidder could be an unregistered national securities exchange, alleging “the transactions in crypto assets necessary to effectuate the rebalancing, the redistribution of such assets to Account Holders, may violate the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or delivery after sale of securities.”

NYDFS and New York’s attorney general, Letitia James, also opposed the deal, alleging that Voyager was unlawfully serving customers in the state. They also questioned the purported timeline for customer repayment while Binance.US is trying to gain approval in the state, where New Yorkers would have to wait six months to get their assets back.

The SEC also wants to know how Binance.US intends to secure customer assets during and after the transaction and how it would rebalance its cryptocurrency portfolio.

Additionally, state securities officials from Texas filed separate objections to the deal. The Texas State Securities Board and the Texas Department of Banking claim that the bankrupt crypto lender and its sole bidder are “not in compliance with Texas law and are not authorized to conduct business in Texas.”