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After FTX Debacle, Binance.US set to acquire assets of Voyager for $1 billion

Key Takeaways:

The year 2022 was extremely bearish for the entire crypto space as multiple events occurred slashing the prices as well as the confidence of the traders. It all began when one of the algorithmic stablecoins USTC (UST then) depeged unstabilizing the crypto it was backed, TerraClassic LUNC (Terra LUNA then).  This shook the entire crypto space which led to a series of fallouts which has direct exposure to 3 Arrow Capital. 

Voyager Digital, a crypto brokerage firm, filed for bankruptcy as it reported a huge loss from the 3AC to whom the company held 15,250 BTC. Earlier, the popular crypto exchange FTX had acquired the company for $1.42 billion, beating Wave Financial in an auction. However, after the current FTX collapse, Binance has stepped into FTX’s shoes to purchase the assets belonging to Voyager.

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And amid all that, there was a bid open to acquire the assets of the bankrupt crypto firm – Voyager in an attempt to make its customers whole. Binance’s Changpeng Zhao announced the news that Binance.US won the bid to acquire Voyager’s assets.

Binance recently announced the US wing of the exchange was being chosen as the ‘highest & the best bid’ for the assets as per the procedures with the Chapter 11 bankruptcy. The current bid was estimated to be around $1.022 billion among which $1.002 billion is for Voyager’s current portfolio and the rest $20 million is for incremental value. 

Cracking the deal, Binance US said, 

“This deal offers a clear route ahead for Voyager client’s monies to be unlocked as soon as feasible, and returned to them in the form of the cryptocurrency formerly held in their voyager accounts,”…”We hope our selection brings to an end a difficult bankruptcy process which saw customers wrongfully dragged into it at no fault of their own.

Additional Read: Top Crypto Price Predictions 2023

The President & CEO of Binance US in a blog post stated that after this transaction the Voyager customers may have access to any future crypto distributions from the Voyager bankruptcy proceedings through the Binance US platform. 

After the deal, the company is now set to ask the court for permission to sign an asset purchase deal with Binance.US in its upcoming hearing scheduled on 5 January, 2023. 

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