- Binance US receives initial approval from bankruptcy judge to acquire the Voyager Digital lending platform for $20 million.
- Judge Michael E. Wiles needs to accept the bankruptcy liquidation plan to finalize the deal.
- BNB price witnessed a breakout from sideways price action and started an uptrend.
Binance, the world’s largest cryptocurrency exchange platform by trade volume, is on track to acquire bankrupt crypto lender Voyager Digital. After initial hiccups and opposition from the US Securities and Exchange Commission (SEC) a financial regulator, Binance is preparing to complete the acquisition for $20 million. If the deal goes through, former customers of the bankrupt lender stand to get back over half of their lost deposits.
The exchange still needs another round of approvals to complete the deal. News of Binance’s success with the initial approval has fueled a bullish narrative among native token BNB holders and the asset continued its climb in an ascending channel.
Also read: Binance holds 91.57 trillion Shiba Inu tokens, ranks SHIB as one of the most watched cryptos of the year
Judge gives thumbs up to Binance’s Voyager Digital acquisition
Binance is preparing to acquire shipwrecked crypto lender Voyager Digital. The firm received initial court approval on Tuesday for the sale of $1 billion worth of assets to Binance US. Voyager Digital is in the process of expediting a US national security review of the deal, for the next round of approvals.
Judge Michael Wiles in New York gave the nod to the purchase agreement with Binance US. The deal is in its initial phases and needs to get the go ahead from creditors and a final court hearing before it goes through.
During the holidays, US financial regulators, the US Committee on Foreign Investment in the United States (CFIUS) raised concerns and opposed the deal. In a December 30 court filing, CFIUS said that its review, “could affect the ability of the parties to complete the transactions, the timing of completion, or relevant terms.”
Executives at Voyager Digital have affirmed their intent to address issues raised by the CFIUS. Joshua Sussberg, the bankrupt crypto lender’s attorney said,
We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along.
Binance is prepared to close the deal with a $20 million cash payment and an agreement to transfer Voyager’s customers to Binance US’ crypto exchange. Customers will be granted access to withdrawals, and users will recover 51% of the value of their assets lost to Voyager’s bankruptcy filing.
If the deal falls through and fails to get creditor and court approval in the next hearing, the lender will be forced to use assets on hand to repay customers, resulting in a significantly lower payout, according to Attorney Sussberg.
BNB price eyes $292 target in its uptrend
Binance coin (BNB), the native token of crypto exchange platform Binance is on track to breakout of its ascending channel. There are two signs that signal the bullish breakout in Binance’s native token, as seen in the chart below.
The recent crossover of the 50-day Exponential Moving Average (EMA) (in orange) above the 200-day EMA (in blue), referred to as the “Golden Cross” was followed by a candle validating the bullish breakout in BNB. Further, BNB price is climbing higher within an ascending channel since January 4, after sideways price action for the last two weeks of December 2022.
BNB/USDT price chart
The chart above shows that the Relative Strength Index (RSI), a momentum indicator reads 64.04, and has fallen below 70. This suggests that whilst the indicator may have given traders the signal to sell their long positions recently, RSI now has room to continue rising and is not strictly signaling price is ‘overbought’ anymore. Overall there is room for BNB price to climb in the ascending channel again, although initially there is the risk of further downside in the short-term to support at the lower channel line.
The key resistances for BNB price are:
- $292, the level at which 50-day EMA crossed below the 200-day EMA, the “Death Cross” on the weekly chart
- The $306.2 level, that represents the 50-day EMA on the weekly chart
These price levels are areas of interest for bulls pushing the asset’s price higher. A decline below the lower trend line of the ascending channel, accompanied by relatively high trade volume could invalidate the bullish thesis and signal a drop to the long-term EMAs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Binance CEO calls CFTC suit “disappointing” as district court halts Voyager $1 billion sale to Binance.US
Voyager’s deal with Binance’s United States entity, Binance.US, faced another hurdle on March 27, the same day that the Commodity Futures Trading Commission (CFTC) went after the crypto exchange. This is the second time in the span of a month that Voyager’s deal has been objected against by the government.
90% of Ethereum supply leaves exchanges as regulators struggle to classify ETH as Security or Commodity
Ethereum is known not only as the second-biggest cryptocurrency but also as the second-generation cryptocurrency. The blockchain not only brought Decentralized Finance (DeFi) to the crypto space but also framed a target on its back following its Proof of Stake transition plan.
This is how EOS holders responded to the network's EVM testnet launch, what to expect this week
The first milestone on the EOS Network Foundation’s roadmap, the completion of the EOS EVM (Ethereum Virtual Machine) code, was achieved on March 22, starting the countdown to the launch of the EOS testnet. Well, it is finally here and the community is elated as it brings them closer to the mainnet release on April 14.
XRP price recovers above $0.44 as court ruling approaches, will Ripple win against the SEC?
XRP price has kept its momentum, flashing green on the one-day timeframe as the countdown to the Ripple vs SEC lawsuit continues. The remittance token is moving in tandem with our prediction last week, soaring by a significant margin to secure a place among the best-performing cryptocurrencies on a one-week timeframe.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.