Stretto, a bankruptcy management platform, initiated a poll on 61,300 account holders who have claims against Voyager. According to the poll, 97% of individuals were in favor of Binance.Us acquiring Voyager’s assets. This portion represents 59,183 users who agreed with the restructuring plan. Around 2,117 voters were against the acquisition idea. This figure represents 3% of the 61,300 account holders.
Customers Vote for Reforms
Voyager’s woes began in July 2022 when the firm filed for bankruptcy. At the time, Voyager struggled to operate due to unfavorable market conditions. The platform also blocked functions like deposits, trading, and withdrawals before filing for bankruptcy. Going by the US laws, a bankruptcy filing lets insolvent firms redesign their financial obligations via sale or restructuring.
The exchange’s buyout plan comes when Voyager is trying to remain afloat. In the poll, 97% of the claims represent assets worth $500M, with unsecured claims totaling $3M. Therefore, the vote for structural reforms is justified based on the huge number of customer claims. This plan will be finalized after Voyager’s bankruptcy hearing in March 2023.
Regulators Oppose the Buyout Strategy
Several regulatory bodies are concerned about the exchange’s idea of buying Voyager’s assets. In December 2022, Binance.US announced it would buy Voyager’s assets for $1.2B, making it the highest bid Voyager had received since its downfall. Buying the firm’s assets would allow Voyager customers to recover their investments.
This plan, however, didn’t sound good to state and federal regulators. Texas is one state that opposed the buyout, saying that the plan lacks inadequate disclosures. The sentiments, which the Texas State Securities Board made, also suggested that the strategy was biased toward Texas creditors. From their end, Texas believes that the plan doesn’t inform creditors that they can only recover 26% compared to the recommended 51% under the bankruptcy laws.
SEC is also part of the objection cohort, stating that the buyout scheme can breach certain security laws. The regulatory body has specific concerns about the security of these assets once the acquisition process succeeds.
According to the SEC, the information contained in the buyout plan fails to explain key concerns. Such concerns question whether Binance.US and its affiliates can access users’ private keys. Thus, SEC expects that Binance.US will clarify these issues and explain who controls the customer’s holdings once the deal is finalized.
