- Binance US has received initial approval from a bankruptcy judge to acquire the Voyager digital lending platform for $20 million.
- Judge Michael E. Wiles must accept a bankruptcy liquidation plan to complete the transaction.
- BNB price has witnessed a breakout from flat price action and started an uptrend.
Binance, the world’s largest crypto exchange platform by trading volume, is on track to acquire bankrupt crypto lender Voyager Digital. After initial issues and objections from financial regulator, the U.S. Securities and Exchange Commission (SEC), Binance is preparing to complete her $20 million acquisition. If the deal goes through, the bankrupt lender’s former customers will be able to recover more than half of their lost deposits.
The exchange still needs another approval round to complete the transaction. The news that Binance was successful with its first approval spurred bullish talk among his BNB holders of his native token, and the asset continued its rise in the ascending channel.
Also Read: Binance holds 91.57 trillion Shiba Inu tokens, making SHIB one of the hottest cryptocurrencies this year.
Judges vote in favor of Binance buying Voyager Digital
Binance is preparing to buy shipwrecked crypto lender Voyager Digital. The company received its first court approval on Tuesday to sell $1 billion worth of assets to Binance US. Voyager Digital is moving quickly through US national security review of the transaction for the next approval round.
New York Judge Michael Wiles has agreed to a purchase agreement with Binance US. The transaction is in its early stages and is subject to approval from creditors and final court hearings.
While on vacation, the US financial regulator, the Commission on Foreign Investment in the United States (CFIUS), expressed concern and voted against the deal. In a Dec. 30 court filing, CFIUS said its review “could impact the parties’ ability to complete the transaction, the timing of completion, or the terms and conditions involved.”
Voyager Digital executives confirmed their intention to address the issues raised by CFIUS. Joshua Sussberg, an attorney for bankrupt cryptocurrency lenders, said:
We are working with Binance and its attorneys to address that investigation as well as voluntarily file an application to move this process forward.
Binance is ready to sign a $20 million cash payment and a deal to transfer Voyager customers to the Binance US cryptocurrency exchange. The customer will be granted access to withdrawals, allowing the user to regain his 51% of the value of the assets lost due to Voyager’s bankruptcy filing.
Sussberg’s lawyers say that if the deal fails and is not approved by creditors and the court at the next hearing, the lender will be forced to use assets on hand to repay the customer, resulting in: Payouts are significantly reduced.
BNB Price Targets $292 Target In Uptrend
Binance Coin (BNB), the native token of crypto exchange platform Binance, is on track for a breakout of the rising channel. As seen in the chart below, there are two signs pointing to a bullish breakout for Binance’s native token.
A recent crossover of the 50-day Exponential Moving Average (EMA) (orange) above the 200-day EMA (blue), dubbed the ‘golden cross’, followed with a candle that validated a bullish breakout for BNB. Moreover, BNB price has been rising within an ascending channel since January 4th after his two weeks of flat price action at the end of December 2022.
BNB/USDT price chart
The chart above shows the relative strength index (RSI), a momentum indicator, showing 64.04, below 70. It is not strictly indicating that the price is no longer ‘overbought’. Overall, there is room for the BNB price to rise again in the ascending channel, but initially there is a risk of further declines in the short term to support at the lower channel line.
The main resistances for BNB price are:
- $292, the level where the 50-day EMA broke below the 200-day EMA, a ‘death cross’ on the weekly chart
- $306.2 level representing the 50-day EMA on the weekly chart
These price levels are areas of interest for bulls pushing the price of the asset higher. A drop below the lower trendline of the ascending channel, with relatively high trading volume, could invalidate the bullish thesis and signal a drop in the long-term EMA.
