- Bankrupt crypto lender Voyager won initial court approval to sell assets to the US arm of crypto exchange Binance.
- The proposed buyout includes an agreement to transfer Voyager's customers to the crypto exchange, Reuters reported.
- Voyager customers are moving closer to being able to make withdrawals.
Bankrupt crypto lender Voyager Digital has won initial court approval to sell assets to the US arm of Binance, allowing the cryptocurrency exchange to move ahead with its planned $1 billion agreement.
The proposed buyout includes a $20 million cash payment and an agreement to transfer Voyager's customers to the crypto exchange, Voyager attorney Joshua Sussberg told the United States Bankruptcy Court for the Southern District of New York in a Tuesday hearing, Reuters reported. Customers would then be able to make withdrawals.
Sussberg also told the court Voyager plans to address any issues that would lead to opposition to the deal by the US Committee on Foreign Investment in the United States. The CFIUS, which reviews foreign investments in US companies for national security risks, had asked questions about the deal that still needs to undergo final approval.
Binance's worldwide operations are owned by Chinese-Canadian billionaire Changpeng "CZ" Zhao. He has previously said Binance.US is a fully independent entity based in California.
US Bankruptcy Judge Michael Wiles is allowing Voyager to hold a creditors' vote on the sale of its assets to Binance.US.
Voyager Digital filed for bankruptcy protection in July 2022 after the crash of the crypto coins TerraUSD and Luna. Binance.US pursued Voyager's assets after a deal to sell them to FTX for $1.4 billion fell through after FTX collapsed in November.