Voyager Fights For Binance.US Deal Amid Objections From Regulators, Alameda Research

Zinger Key Points
  • Voyager says concerns about Binance.US's ability to afford deal are unfounded.
  • Voyager accuses regulators of "hypocrisy."

Voyager is defending its intention to sell $1 billion worth of assets to Binance.US.

The cryptocurrency lender called objections to the deal "hypocrisy and chutzpah based on unverified speculation,” according to legal documents.

Alameda Research, the trading division of insolvent cryptocurrency exchange FTX, along with the U.S. Securities and Exchange Commission (SEC), the Department of Justice (DoJ), and several state-level agencies have all voiced resistance to the proposed sale.

See Also: FTX US President Intends To Provide More Details On Crypto Exchange's Collapse

A bankruptcy court in New York will hold a hearing on the matter on Tuesday.

Voyager maintains that the SEC's doubts regarding Binance.US's financial stability are unwarranted. Alameda, which had previously attempted to rescue Voyager before going bankrupt itself, was accused of raising "frivolous" arguments that exhibit "hypocrisy and chutzpah at its finest."

Before Voyager went bankrupt, FTX and Alameda Research had both made acquisition offers.

Voyager asserted that it only entered into a loan agreement with the two businesses based on "fraudulent and false representations," and charged FTX with seeking to acquire Voyager in a bid to "mask the holes on its own balance sheet resulting from their apparent fraud."

Voyager says in court documents that the Binance agreement is the best choice open for creditors in today's erratic cryptocurrency market.

The company added that there are still ways to end the agreement if a better choice is found in the future.

Next: Digital Currency Group Under Scrutiny For Internal Transfers, SEC Investigates

Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.

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Posted In: CryptocurrencyNewsTop StoriesMarketsAlameda ResearchBinanceBinance.USDepartment of JusticeFTXUS Securities and Exchange CommissionVoyager
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