Binance’s bid to rescue the insolvent cryptocurrency brokerage is closer to becoming a reality following a vote by Voyager users. Nonetheless, the deal is anticipated to encounter significant regulatory resistance.
Several US regulators have raised concerns about the deal, claiming that the terms are unfavorable for creditors and that Voyager’s executives are not being held responsible for the millions in customer losses. Despite this, the majority of Voyager Digital’s users voted in favor of the sale of its assets to Binance US, with over 97% of participants approving the USD 1 billion deal between the two companies.
Over 59,000 voters, who represented over USD 550 million in claims against the brokerage, participated in the Voyager users’ vote, as per a court filing by the restructuring firm Stretto on Tuesday. Out of those, more than 97% voted in favor of the USD 1 billion deal between Voyager and Binance’s US affiliate, while 2,117 users rejected the proposal. Although Voyager claims that the Binance bid will enable customers to recover 51% of the assets locked in the exchange, multiple US regulators object to the deal.
Regulators from the Texas State Securities Board and the Texas Department of Banking objected to the Binance takeover deal on Friday, citing Voyager’s inadequate reporting of its liabilities. They highlighted Alameda Research’s USD 445 million loan against Voyager as a potential factor that could reduce the amount that Voyager customers may receive from the deal.
The SEC raised objections to the Binance takeover deal, citing a lack of disclosures about the Binance US platform and potential violations of laws against unlicensed securities offerings. The FTC claimed that the deal could release Voyager executives from liability, making it impossible for users to seek damages beyond the Binance plan.
