Key takeaways:
- Voyager Digital’s customer base has voted to support Chapter 11 bankruptcy, and the company has transferred about $121 million in cryptocurrencies.
- Voyager claimed that the bankruptcy plan, which calls for selling its assets to Binance US, has received support from 97% of its clients.
Voyager Digital Holdings, a crypto lender that declared bankruptcy last year, reported on Tuesday night that 97% of its clients—representing 98% of all claims—voted to support a chapter 11 restructuring plan that calls for Binance US to buy some of its assets.
According to a late Tuesday filing, the claims with 97% of the vote in favor account for nearly 98% of the total claims, or $541.61 million, plus another $3 million in unsecured claims. On Thursday, the business will be at a bankruptcy hearing where its lawyers will ask the judge to approve the restructuring plan.
Voyager declared in December 2022 that Binance US is the highest and best offer for its assets after carefully weighing all of its choices. In contrast, the company’s plan to sell its remaining assets to Binance US to pay off creditors is opposed by the US SEC and authorities from Texas and New Jersey, according to court documents filed on February 24.
The regulators objected on the grounds that Voyager pays Alameda a sizable loan, which would wipe out most of the proceeds from selling its assets to Binance US. Regulators are also concerned that acquiring Voyager’s assets will offer Binance access to the US market without the necessary authorization.
The regulators also claimed that Binance US terms of service permit sending personally identifiable information to organizations outside the United States. As stated in the filing:
“So, under these ToUs, customers’ information can be transferred to almost any company or person that Binance.us desires, and, if any issues arise in the customers’ access to or use of Binance.us’s Services, the customers have absolutely no right to challenge the issue.”
Additionally, the Texas watchdog claimed that because Texas does not fall under Binance US, the deal’s purview was “unfair” to Texas citizens. As a result, under the transaction terms, Voyager would need to keep Texans’ assets for at least six months.
The FTC has criticized the company’s bankruptcy strategy because it would enable it to escape responsibility for actual fraud, intentional misconduct, or gross negligence. The regulator declared that if the plan is approved, it will no longer be able to sue Voyager or any of its former workers or impose fines.
