The decision by Binance US to buy assets from the insolvent crypto lending company Voyager Digital has received support from 97% of Voyager’s clients. According to a court document filed on February 28, the vast majority of Voyager Digital account holders support being acquired by the Binance cryptocurrency exchange, which is situated in the United States.
Voyager clients were surveyed by bankruptcy management company Stretto, who questioned 61,300 account holders with complaints about the troubled crypto lender.
Just 3% of the voters, or 2,117, opposed the Binance US reorganization proposal, which received 59,183 votes in total. Voters were separated into four divisions, including three categories for “generic unsecured claims” and claims made by account holders. Both of these organizations supported the proposition in their votes.
Binance US revealed a deal to purchase the assets of Voyager for $1.02 billion in December. The Binance US offer “aims to refund cryptocurrency to clients in kind, in compliance with court-approved payments and platform capabilities,” according to the press release at the time.
Nevertheless, the US subsidiary of the biggest cryptocurrency exchange in the world has received a lot of resistance and multiple objections to the idea.The Texas State Securities Commission and the Department of Banking opposed the planned sale, according to a court document filed on February 24.
The reorganization plan, it was said, included a number of “inadequate” disclosures. Some of these included failing to advise unsecured creditors that, rather to the 51% they would get in Chapter 7 bankruptcy, they could only be entitled to a 24%–26% recovery.
The action was also opposed by the Securities and Exchange Commission (SEC). The purchase of Voyager assets by Binance US, according to a court filing on February 22, may have violated securities laws. The Federal Trade Commission (FTC) opened an inquiry against Voyager Digital on the same day due to its “unfair and misleading marketing of cryptocurrencies to the public.”
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