Binance.US to Acquire Assets of Voyager of Worth $1 Billion
Today, bankrupt cryptocurrency lender Voyager Digital Ltd. said cryptocurrency exchange Binance.US, the American branch of cryptocurrency exchanges Binance Ltd has agreed to buy its assets. This will pave the way for the restoration of client funds.
Based on the expected fair market value of Voyager’s cryptocurrency portfolio at a predetermined future date plus $20 million in added value, the purchase is valued at $1.022 billion. Upon the failure and bankruptcy of FTX Trading Ltd., a cryptocurrency exchange, Binance was considering making a bid for Voyager.
Bankman-Fried, CEO of FTX, has previously acted as a “white knight” for the cryptocurrency sector by purchasing troubled crypto assets. Within the context of that action, FTX was the initial September winner of a bid for Voyager’s assets.
After FTX declared bankruptcy, however, it could no longer complete the acquisition of Voyager’s assets, and those assets were put up for auction once again. Binance said in a news release that its “Binance.US proposal” intends to return crypto to clients in kind, in keeping with payments permitted by the court and the platform’s capabilities.
Binance will reimburse Voyager for certain expenditures up to a maximum of $15 million and make a good faith deposit of $10 million. The transaction is subject to bankruptcy court clearance, and a hearing on the topic has been scheduled for January 5, 2023.
Amidst the upheaval in the crypto market after the collapse of cryptocurrency hedge fund Three Arrows Capital in July, Voyager filed for bankruptcy. Several major firms, including cryptocurrency lenders Celsius Network LLC and Holdnaut, declared bankruptcy in the following months.