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Binance To Buy Voyager’s Assets In A $1 Billion Deal

Author

John Asher

Tags

Reading time

2 mins
Last update

Author

John Asher

Tags

Reading time

2 mins
Last update

Author

John Asher

Tags

Reading time

2 mins
Last update

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Voyager Digital Ltd., the bankrupt crypto lender, entered into an agreement with Binance.US, the American arm of crypto exchange Binance Ltd. to acquire its assets. The deal will be able customers to access their crypto on Binance.US after the completion of the acquisition.

Binance.US Wins Bid To Acquire Voyager Assets Worth $1.022 Billion

Binance.US announced that it entered into an agreement with Voyager Digital to acquire the assets of the latter. The Binance.US was also its “highest and best bid” and the deal was worth nearly $1.022 billion.

The deal is comprised of $1.002 billion of fair market value in Voyager’s cryptocurrency portfolio at a to-be-determined date in the future plus an additional $20 million of incremental value. Binance will make a $10 million good-faith deposit and will reimburse Voyager for certain expenses up to a maximum of $15 million.

Voyager’s Customer Funds Will Be Soon Unlocked

Brian Shroder, chief executive and president of Binance.US stated that their bid is a reflection of their guiding principle that customers should come first. The company’s goal is simple, in which to return users their cryptocurrencies on the fastest timeline possible

Binance said in a press statement that in accordance with court-approved disbursements and platform capabilities,  the Binance.US bid aims to return crypto to customers in kind.

The deal will be a ray of hope and a potential resolution for Voyager’s 1.7 million users. A hearing will be held on Jan. 5, 2023, to discuss approval from the bankruptcy court for the asset purchase agreement.

Voyager’s Demise Amid Broader Market Downturn 

Voyager filed for bankruptcy in July amid a broader market downturn and a series of bad bets caused by the collapse of Three Arrows Capital, a cryptocurrency hedge fund. Multiple crypto lending companies had gone bankrupt in the following months, including Celsius Network LLC and Holdnaut.

Despite winning the bid to acquire Voyager’s assets for $1.4 billion in September, FTX is no longer a possible buyer for those assets following its collapse. Prior to its crumble, FTX was known as a “white knight” in the crypto industry.