Binance.US Agrees to buy Voyager’s Assets for $1 Billion

Binance.US Agrees to buy Voyager’s Assets for $1 Billion

The US subsidiary of Binance crypto exchange has won the bid to purchase Voyager’s assets for $1.02 billion. Once the deal is complete, customers can link their wallets to Binance.US to receive reimbursements promised by the ex-crypto lender.

Binance.US, the US-based subsidiary of the world’s largest cryptocurrency exchange, has agreed a deal to purchase assets held by bankrupt crypto lender Voyager Digital. In an auction held on Monday, Voyager selected Binance’s bid of $1.02 billion for its assets.

In what has been a long year, Voyager faced a liquidity crisis following its exposure to crypto hedge fund Three Arrows Capital (3AC). 3AC, who owes the ex-crypto lender over $560 million in credit, defaulted on its loans and declared insolvency which made things go from bad to worse for Voyager. The company that was already facing pressures of the crypto bear market, had some large repercussions across the sector and was forced to file for Chapter 11 bankruptcy in July.

As part of a financial restructuring plan, Voyager decided to sell off its assets in order to return some of the funds back to customers. In September, Sam Bankman-Fried’s FTX exchange won a $1.31 billion bid to buy all of the assets for a purchase price of $50 million. Voyager also loaned 6,500 BTC ($10 million) and 50,000 ETH ($69 million) to FTX’s sister firm and marker maker Alameda Research. In November, FTX got into trouble after it had mismanaged $10 billion worth of customer funds. The crypto exchange filed for bankruptcy the same month. Luckily for Voyager, apart from a $5 million deposit made in good faith by SBF, no assets were transferred by the company to the now insolvent exchange. Voyager has since recalled about $170 million in loan given to Alameda, but said that it has about $3 million worth of funds stuck on the exchange. Voyager then reopened the bid to find a new buyer for its assets.

Binance.US Agrees to buy Voyager’s Assets for $1 Billion

On Monday, Binance.US agreed to buy the insolvent crypto lenders assets for $1.022 billion. The amount comprises “fair market value of Voyager’s cryptocurrency portfolio” which is currently valued at an estimated $1.002 billion, and an additional $20 million for other assets of “incremental value”. With its bid, Binance.US aims to return funds promised to customers by Voyager Digital. Users with assets locked up on Voyager can connect to Binance.US to view their portfolios based on their previous positions.

“Upon close of the deal, users will be able to seamlessly access their digital assets on the Binance U.S platform where they will continue to receive future disbursements from the Voyager estate,” said Brian Shroder, CEO of Binance.US

Binance.US will make a $10 million deposit in good faith and will reimburse Voyager for certain expenses of up to $15 million. According to the terms of agreement, should the deal not be closed by April 18, 2023 subject to a one-month extension, Voyager can use the initial deposit to return value to customers. Due to the Chapter 11 procedures, the deal will only be closed once approved by the Bankruptcy Court of the Southern District of New York in a hearing scheduled for January 5, 2023.

After the news broke out, Voyager’s VGX token rose by 24% and is currently priced at $0.37. Meanwhile, BNB is trading at $248.86 – up by 1% in the last 24-hours.

Also Read Mazars Suspends Proof-of-Reserves Audit for Crypto Companies

Backer B
Written by

Backer B

Blockchain Expert

Fascinated by Blockchain technology and its evolution, Backer. B studies the space up close. Get on board for accurate data and analysis on Crypto, Web3, Metaverse and everything on-chain.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *