As Binance's bleeding worsens, the Voyager Acquisition is granted.

As the exchange experiences substantial withdrawals, a U.S. bankruptcy court has authorized Voyager Digital's planned $1 billion transfer of its operations to Binance.US.

The United States also approved the agreement. Michael Wiles, a bankruptcy judge in New York, said Voyager might ask for creditor approval of the deal. The insolvent cryptocurrency lender stated that it will work to have the deal's national security approval expedited. In the absence of a subsequent court hearing, the court declared the sale to be complete.

CFIUS issues

Attorney for Voyager Joshua Sussberg addressed issues raised by the United States during the court session. United States Committee on Foreign Investment (CFIUS). China has come under increased scrutiny from the interagency group that examines foreign investments in American businesses for national security issues. Changpeng Zhao, the CEO of Binance, was born in China but has lived in Canada for 30 years.

The CFIUS review “could affect the ability of the parties to complete the transactions, the timing of completion, or relevant terms,” the agency stated. Furthermore, to transfer $20 million in cash, Voyager's clients would be transferred to Binance.US's exchange, as per Sussberg. This would allow investors to then make withdrawals.

Voyager predicts that consumers could recoup about 51% of the worth of their investments if the deal falls through. These sums are calculated using the numbers in effect at the moment Voyager filed for bankruptcy. If CFIUS decides to approve the deal, Voyager would be required to pay clients using the remaining crypto it has left over, which could result in a reduced payout.

Biance develops

Voyager had first auctioned off its properties to FTX after declaring bankruptcy in July. However, after the exchange's collapse, the contract was abandoned. As a result, Binance was able to submit a second offer throughout its American division after the first one was rejected owing to national security issues. Binance.US was subsequently chosen by Voyager as “the highest and best bid for its assets.”

While Binance today appears to be supporting the crypto industry in a manner akin to what FTX once did, it has recently encountered problems. According to a recent Forbes report, Binance has lost a sizable portion of its assets due to BNB and BUSD withdrawals over the past two months. Nearly 25% of Binance's holdings were lost in the $12 billion in capital outflows it experienced during the previous 60 days.

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