3 - 5 minute read
Cryptocurrency lender Voyager Digital Holdings has made headlines with its $1 billion deal with Binance US. However, this deal was temporarily halted by a Federal Judge due to certain legal liabilities that the United States government claimed could not be waived. In a recent development, Voyager has worked out a deal with the US Federal government that allows Binance to acquire its digital assets.
Voyager Digital Holdings was founded in 2018 in Canada and has since expanded to the United States. The company allows users to trade and invest in various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Binance US is the American arm of Binance, a global cryptocurrency exchange platform. This acquisition is a significant move for both companies, as it will expand Binance US’s offerings and provide Voyager with much-needed funds.
1/ Voyager, the UCC, and the Government reached a resolution that will allow the Plan to move forward and go effective shortly.— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 19, 2023
The U.S. government’s initial apprehension about the deal stems from provisions allowing Voyager to be immune from certain legal liabilities. The Official Committee of Unsecured Creditors, Voyager, and the U.S. government have now agreed to move the acquisition forward, while the government can continue appealing the aforementioned provisions.
In response to the recent development, Steve Ehrlich, CEO of Voyager, stated, “We are excited to be moving forward with our proposed transaction with Binance.US and are pleased that the government committee has agreed to support the orderly completion of the transaction.” This statement shows that Voyager is now one step closer to completing the acquisition after many regulatory hurdles.
However, it is essential to note that the government is still in the process of appealing the provision of the proposed transaction that offers Voyager immunity from certain legal liabilities. As such, the future of the transaction remains somewhat uncertain. It is also worth considering the extent to which this uncertainty will impact the market value of cryptocurrencies during this period.
While this acquisition opens up exciting possibilities for both Voyager and Binance US, traders need to remain vigilant. The ongoing legal battles may create uncertainty and volatility in the market, which may present opportunities for savvy traders or pose significant risks. As always, traders should ensure that they have tailored their investment strategies, placing stop-losses and taking caution during this period of uncertainty.
The Bottom Line
Voyager Digital Holdings has worked out a deal with the US Federal Government that allows Binance US to acquire its digital assets for $1 Billion. While this acquisition holds promise for both companies, regulatory and legal hurdles still exist. Traders should pay attention to this period of uncertainty in the market and assess their risks adequately. Failure to do so may result in significant losses or missed investment opportunities.