The bankruptcy judge for the Voyager Digital case has approved the crypto lender’s move to sell its assets to Binance for $1.3 billion. He also overruled the U.S. SEC’s objection to the deal.

Bankrupt crypto lending firm Voyager Digital has received approval from a United States bankruptcy judge to sell its assets to Binance.US.

The exchange will buy the assets for $1.3 billion, though there is some chance that the deal will not come through, as the United States Securities and Exchange Commission (SEC) objects to it.

U.S. Bankruptcy Judge Michael Wiles approved the tactic, which is part of Voyager’s financial restructuring plan. The judge overruled the SEC’s objection, as he deemed it vague. The attorney for the agency said that Binance.US was not a registered securities exchange and, on those grounds, objected to the sale of the assets. Voyager will receive $20 million from Binance.US for the assets that the bankrupt crypto lending company’s customers held.

There are still some hurdles to cross before the deal is finalized. The Committee on Foreign Investment in the United States (CFIUS) is investigating potential national security risks associated with the investment in Voyager. Binance.US has maintained that it operates completely independently of its parent company Binance.

Should the deal close, customers of Voyager can begin making withdrawals — the first time since their accounts were frozen last year. The company has explicitly stated that this should allow customers to recover up to 73% of the value.

The approval comes as the case heats up, with myriad developments taking place in recent times. Judge Wiles also rejected the SEC’s efforts to fine executives from Voyager should it decide to issue bankruptcy tokens to reimburse customers.

The SEC’s argument was that the bankruptcy token would represent an unregistered securities token offering. This offers some respite to the crypto lender, which is fighting a very tough case.

Multiple other developments are making headlines with respect to Voyager’s bankruptcy case. The lender sent $121 million worth of crypto assets to various exchanges since the start of February. It also received $150 million in USDC, possibly from cryptocurrency sales.

Meanwhile, former FTX CEO Sam Bankman-Fried has resisted calls for testimony in the Voyager case. FTX and Alameda Research are trying to regain $446 million in loan repayments from Voyager.

The post Bankrupt Voyager To Sell Assets to Binance.US Pending SEC Objection appeared first on BeInCrypto.

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