Binance.US set to acquire Voyager Digital assets for $1B
Voyager digital which was once a popular name in the cryptocurrency investing market filed for bankruptcy in July 2022. The crypto broker gave many reasons for this sudden bankruptcy, including the volatility of the market and the surprising collapse of Three Arrows Capital. This platform earlier had the highest bid of 1.4 billion USD. this bid was made by FTX US for the firm’s assets. But after the shocking and catastrophic collapse of FTX and the CEO Sam Bankman Fried, this deal failed to see its fruition. But according to reports, now Binance US is all set to attain the firm’s assets for around 1 billion dollars.
Press Release
In the press release that was issued on 19th December 2022, it was announced that Binance.US, the US leg of the world’s biggest bitcoin exchange that allows users to manage crypto in the USA, will be acquiring Voyager Digital Limited’s assets for a sum of $1.022 billion USD. According to the firm the exchange had represented the “highest and best bid for its assets.”
It was also made clear that “The Company’s claims against Three Arrows Capital remain with the bankruptcy estate, and any future recovery on these and other non-released claims will be distributed to the estate’s creditors. The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities.”
Deal details and Voyager Bankruptcy
The estimated date of completion for the deal is 18 April 2023. In fact, a 10 million dollar deposit is being made by Binance.US, all in good faith and will along with that also compensate Voyager for particular expenses up to a maximum of $15 million. The bankruptcy court that will approve the deal will hold its hearing on the 5th of January 2023.
The Voyager bankruptcy followed their pausing of withdrawals in July 2022 which were caused by liquidity issues after being exposed to a $650 million loan default at the hands of Three Arrows Capital, the Singapore-based cryptocurrency hedge fund that was made to liquidate on 27th June 2022.
According to Binance, the aim behind the deal was for “…customers’ funds to be unlocked as soon as possible, and returned to them in the form of the cryptocurrencies previously held in their Voyager accounts.” keep in mind that while the deal has come to an agreement, the sale is still not solidified. After the announcement of this deal, the price of the Voyager token VGX spiked by 31.78% and is now at $0.3727 USD.
Also Read:
Crypto Crash November 2022 & the collapse of FTX Empire: What caused it?
What happens when Crypto companies go bankrupt?
