Bankrupt cryptocurrency lender Voyager Digital has received initial US court approval for the $1 billion sale of its assets to Binance.

Voyager filed for bankruptcy in July 2021, just months after the crash of major crypto token TerraLuna, which prompted renewed calls from the UK’s Financial Stability Board for international regulation and supervision of crypto-asset activities.

In a recent court hearing, US bankruptcy judge Michael Wiles in New York allowed Voyager to enter into an asset purchase agreement with Binance’s US division and to solicit creditor votes on the sale, which will not become final until a future court hearing.

The approval follows national security concerns raised by the US Committee on Foreign Investment in the United States (CFIUS), an inter-agency body that vets foreign investments into US companies for national security risks.

Binance is owned by Chinese-born Canadian citizen Changpeng Zhao – better known as CZ. The company has no permanent headquarters and had previously been the subject of a money laundering probe by US prosecutors.

Voyager attorney Joshua Sussberg said Voyager intends to address any issues that could lead the CFIUS to oppose the transaction.

Binance was recently poised to buyout failed crypto rival FTX but pulled out of the transaction.

At the time, Binance said: “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com."

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