• Judge Michael Wiles has granted approval to a deal between Voyager Digital and Binance US.
• This would allow Voyager’s investors to recoup an estimated 50-73% of their holdings.
• The judge expressed frustration with the SEC and DOJ, suggesting they were casting too wide of a dragnet.
Voyager Digital Approved for Deal With Binance US
The US Bankruptcy Judge, Michael Wiles, has approved a billion dollar deal that could potentially see Voyager Digital’s investors recouping up to 73% of their holdings. This decision marks an unexpected turn in the ongoing saga between Voyager and the U.S. Securities Exchange Commission (SEC).
Potential Liquidation Averted
The agreement between Voyager Digital and Binance US would allow creditors to recover approximately $100 million more than through liquidation alone. To receive their refunds, creditors must apply via Binance US‘ platform. Furthermore, should the courts order Voyager to return funds borrowed by Alameda Research, then $445 million will have been reserved for this purpose.
Frustration With SEC & DOJ
In making his decision on approving the sale, Judge Wiles expressed his disapproval with both the SEC and Department of Justice (DOJ) for what he believed was casting too wide of a dragnet when it came to investigations into cryptocurrency firms in recent months. Despite this sentiment, it is clear that caution is necessary in such matters given past meltdowns within the space due to frauds or other malicious activities carried out by certain entities.
Voyager Must Now Decide
Now that approval has been granted by the court, Voyager Digital must now decide whether they go through with the deal or take their chances with complete liquidation – something which could potentially be much less profitable for its investors than originally anticipated prior to this decision being made by Judge Wiles.
Regulation Still Necessary
Although some may disagree with some of the SEC’s recent decisions regarding crypto companies in general, it is clear that regulation is still needed within this space in order protect against future meltdowns caused by malicious entities taking advantage of unsuspecting investors or individuals within the industry itself failing due to inadequate practices put into place at their own firms or projects.