Voyager Digital's Asset Sale to Binance.US: Court Approval and National Security Concerns

Voyager’s Big Move

In a twist worthy of a dramatic courtroom TV series, Voyager Digital, a crypto lender teetering on the edge of bankruptcy, has won initial court approval to sell its assets to Binance.US for a staggering $1.02 billion. It’s like a financial soap opera, and Judge Michael Wiles is the unsung hero, playing guardian of the crypto realm.

What’s the Catch?

However, every good story must have a few hurdles. As the deal starts to take shape, Voyager is under the watchful eye of the Committee on Foreign Investment in the United States (CFIUS), which is conducting a national security probe concerning Binance.US. Talk about a plot twist! Voyager is eager to speed up the review process to dodge any major hiccups. Their attorney, Joshua Sussberg, practically shouted, “Let’s get this show on the road!” in court.

The CFIUS Challenge

CFIUS is like the hawk-eyed overseer of foreign investments in the U.S., and they have the authority to block or alter transactions that raise national security concerns. Think of them as the gatekeepers of financial safety. If they get a whiff of anything suspicious, they can throw a wrench in the works. Sussberg reassured the court that they’re cooperating with Binance to address any concerns that CFIUS might have. The tension is palpable!

An Unexpected Ally

Lucky for Voyager, the Official Committee of Unsecured Creditors—essentially the creditor cheerleaders—backed this asset sale, arguing it would lead to better recoveries than liquidating the assets, which could happen if CFIUS throws a tantrum and blocks the transaction. In essence, they think this deal might be the golden ticket for recovering their losses.

Previous Roadblocks

But wait, there’s more! The road to this deal hasn’t been without its bumps. Various parties, including Alameda Research and the SEC, previously objected to the acquisition. Voyager took a strong stance, claiming that their objections lacked any solid ground—and let’s be honest, who doesn’t love a good comeback?

What’s Next?

As of now, while Voyager clutches its hero’s cape, the deal isn’t finalized until the next court hearing. But if all goes as planned, this could be the comeback story of 2023! Fingers crossed that the CFIUS investigation doesn’t put the brakes on what could very well be the lifeline Voyager and its creditors need.