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Voyager Digital Replies to Objections Over $1B Binance.US Deal

Bankrupt cryptocurrency brokerage company Voyager Digital has responded to objections concerning its acquisition deal with Binance.US. In December, the crypto brokerage agreed for the US arm of the crypto exchange to buy its assets for $1.022 billion. Voyager Digital said at the time that Binance.US offered the “highest and best bid” for the assets. It revealed that Binance was set to make a $10 million deposit.

Following the announcement, however, the Securities and Exchange Commission (SEC) filed a limited objection against the purchase, inquiring about the adequacy of the information Binance.US provided in its disclosure statement. The Commission is particularly concerned about the exchange’s ability to “consummate a transaction of this magnitude.” While the SEC raises questions concerning the agreement, the US arm of the famous crypto company noted that it would be filing a revised disclosure statement before the next hearing on the motions.

Four states, including Vermont, Texas, New York, and Hawaii, the SEC, Alameda Research, and the US trustee, filed objections. It happened after Voyager announced that it had approved the Binance.US offer on the 19th of December. As the SEC claims the plan was insufficiently planned, Alameda Research stated that the plans did not respect its loan facility claims.

Voyager Digital Says Binance.US Agreement Is in Good Faith

The latest update on the transaction between Voyager Digital and Binance.US is that the latter has argued that all the objections to the deal lack factual or legal support. The bankrupt crypto brokerage added that Binance.US offers higher recovery rates for creditors. According to Voyager Digital, accepting the offer from Binance.US was an exercise of sound business judgment. The brokerage company argued the objections in a document filed n the 8th of January, stating:

“The Objections ignore the practical realities of these chapter 11 cases and fail to identify any transaction that provides a better outcome for the Debtors’ creditors. There is none. And time is of the essence in these chapter 11 cases.”

Furthermore, Voyager Digital added that the Binance.US deal preserves the “fiduciary out” provision if debtors determine a better transaction. The document reveals:

“Additionally, the Binance.US Transaction permits Debtors to pivot to a toggle transaction that allows the Debtors to return cryptocurrency and cash to stakeholders if the Debtors exercise their fiduciary out or the Binance.US Transaction is not consummated by the Outside Date (the “Toggle Transaction”).”

Voyager was initially going to agree with FTX.US before the crypto exchange filed bankruptcy in November. FTX won the action for Voyager Digital’s assets in September at approximately a $1.4 billion valuation.

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Voyager Digital Replies to Objections Over $1B Binance.US Deal