The U.S. partner of the world’s largest cryptocurrency exchange Binance has now been able to close a deal with bankrupt cryptocurrency lander Voyager Digital after a United States bankruptcy judge gave the green signal at a hearing in New York.
On Thursday, U.S. Bankruptcy Judge Michael Wiles dismissed the SEC’s charge and approved Binance’s $1.3 billion deal with Voyager. Despite the approval, the agreement is not yet final, and the company is yet to clear all the remaining hurdles before finalizing the deal.
After this favourable announcement, Voyager Token (VGX) shot up nearly 7.9% on the same day.
Before this approval, the United States SEC was against the deal between Binance US and crypto broker Voyager Digital in January, seeking valid reasons and more details regarding greater financial visibility.
As per Reuters, the largest crypto exchange will pay $20 million to Voyager in Cash and will be ready to receive the cryptocurrency deposited by Voyager’s customers. As per Voyager, its clients’ overall digital asset was $1.3 Billion in Feb.
During the SEC investigation and opposition, Changpeng Zhao reiterated this support in tweets to secure the Voyager deal.
Judge Michael Wiles’ acceptance of Voyager’s proposal empowers it to gradually move user’s accounts to Binance. Voyager Digital has the option to back out of the transaction. On Friday, its financial experts testified in court that the business would require up to four weeks to review new issues concerning Binance.
Voyager customers will also be able to extract their money from the Binance US platform for the first time following the closing of this deal.