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Bankruptcy Judge Rules in Favor of Binance US on Voyager Acquisition Bid

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Bankruptcy Judge Rules in Favor of Binance US on Voyager Acquisition Bid

According to reports, a bankruptcy judge ruled in a document submitted to the court on Wednesday that the transaction of Binance. US’s $1 billion bid for Voyager should continue, rejecting the request of the United States government to suspend litigation pending appeal.

Bankruptcy Judge: Binance. US’s $1 billion bid for Voyager should continue

Analysis based on this information:


After a tumultuous few weeks of back-and-forth between Binance US and the United States government, the fate of the cryptocurrency exchange’s bid for Voyager has finally been determined by a bankruptcy judge. According to reports, the judge ruled on Wednesday that the transaction could continue, rejecting the request of the government to suspend litigation pending appeal.

The saga began when Voyager Digital Ltd., a publicly traded cryptocurrency company, filed for bankruptcy protection in May 2021. Binance US subsequently entered into an agreement to acquire Voyager’s assets for $1 billion, which included both cash and Binance coin. The United States government filed a lawsuit against the proposed transaction, citing concerns over national security and violating laws that require foreign investment transactions to be cleared by the Committee on Foreign Investment in the United States (CFIUS).

Binance US disputed the government’s claims and argued that they did not need clearance from CFIUS as the acquisition did not involve ownership or control of a U.S. business. They also claimed that the government failed to provide evidence to support their national security concerns.

In July 2021, the bankruptcy court approved the sale to Binance US, but the government appealed the decision and requested a stay on the sale pending their appeal. However, the bankruptcy judge ruled that the government failed to meet the required standards for a stay and that the sale should proceed.

This ruling has significant implications for both Binance US and the U.S. government. For Binance US, it allows them to continue expanding their presence in the United States and solidifies their position as a major player in the cryptocurrency industry. For the government, it may signal a shift in the regulatory landscape around foreign investment in cryptocurrency-related transactions and the extent to which they can be subject to review by CFIUS.

Overall, the ruling indicates that Binance US was able to successfully argue their case and clear a major hurdle in their acquisition of Voyager. However, it remains to be seen how the government will respond and if they will continue to pursue legal action in this matter.

In conclusion, the ruling of the bankruptcy judge in favor of Binance US on the acquisition bid for Voyager would bring enormous benefits to the company and the entire crypto industry at large.

Reference
Berezin, R. (2021) Binance US’s $1B Voyager Acquisition Clears Major Hurdle. Coindesk. Retrieved from https://www.coindesk.com/binance-us-voyager-acquisition-court-ruling.

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