HomeCryptoThe crypto bailout of Binance US for Voyager comes to a halt

The crypto bailout of Binance US for Voyager comes to a halt

The SEC intervenes in the crypto world yet again by blocking the bailout deal between Binance and Voyager to everyone’s satisfaction

Underlying the SEC’s intervention in the crypto world to block the deal between Voyager and Binance is yet another allegation of unregistered security.

The terms of the crypto deal between Voyager and Binance

After a capital flight similar to FTX, Voyager Digital filed for bankruptcy in September.

The move was aimed at salvaging what could be saved so that all customers could get back their lost investments.

Binance US stepped in to help Voyager in a deal in which the bankrupt company’s customers would get back money already lost and Binance would benefit in new customers and new liquidity.

In an initial phase called Opt-in, Voyager users would provide the data required by Binance for new accounts.

Under the terms of the agreement signed between the parties, Voyager and Binance US expect redemptions to begin as early as early March.

Only customers in Hawaii, New York, Texas and Vermont would have to wait longer due to bureaucratic delays.

Joshua Sussberg, partner at Kirkland & Ellis explained:

“To the extent Binance US does not receive the required license and/or authorization to operate in the unsupported states within 6 months of the closing of the asset purchase agreement, Voyager will convert distributions allotable to such customers into cash and distribute them separately.”

The goal is not 100% recovery but a percentage certainly higher than they could have without the agreement.

“Your effective recovery amount will be a percentage of your claim amount, as determined by Voyager’s rebalancing.”

Voyager: the Binance crypto exchange blocked by the SEC

When everything was ready for the refunds to start, like clockwork came the SEC‘s no.

The regulator’s intervention freezes the deal between Voyager and Binance US pending clarification.

In the wake of Voyager Digital opting for bankruptcy last year, among several companies seeking to rescue it Binance US had won the onus.

Binance US just at the behest of the bankruptcy court had received the mandate for the rescue operation almost two months ago.

Despite the green light in its pocket for the $1 billion bailout deal, the Securities and Exchange Commission decided to block it.

Among the regulator’s objections are suspicions of irregularities and the suggestion that it’s operation is illegal despite there being other examples of mirror operations in the past.

Following the dumping phase that led to the sale of more than 100 million assets each week, a series of suspicious transfers were also discovered.

Analysis of on-chain data revealed that Voyager had moved 4,000 ETH, 300 billion Shiba Inu and 5 million Voyager to other exchanges such as Coinbase.

The SEC and its attack on crypto

According to the Securities and Exchange Commission there is suspicion that Voyager’s tokens may be an unregistered security just as in the lawsuit against Ripple (XRP).

According to some Commentators including Wiles, the SEC’s pronouncement appears to be at least bizarre, something like:

“Come here and tell me…that I should stop everyone in their tracks because you might have a problem.”

For the judge, the US Securities and Exchange Commission’s decision to block the bailout is unbelievable.

This is unusual enough to raise more than one suspicion in a context where 97% of those eligible to vote to approve the deal voted yes.

Since February, the SEC has been tightening the noose around the necks of several cryptocurrencies including Voyager but in the past it all started with the lawsuit against Ripple (XRP).

Gensler, who has recently spoken out about Bitcoin and crypto in general, has faced strong challenges from the crypto community.


George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality