Binance.US to Buy Bankrupt Crypto Lender Voyager’s Assets for $1.02 Billion

Binance.US to Buy Bankrupt Crypto Lender Voyager’s Assets for $1.02 Billion

• Binance.US, an independent Binance unit operating in the US, is said to have reached an agreement with Voyager Digital to buy its assets.
• The deal is valued at $1.02 billion. It’s comprised of Voyager’s crypto portfolio worth $1.02 billion and “an additional consideration” worth $20 million.
• Voyager said that the deal “sets a clear path forward” for Voyager customers to get their reimbursements “as soon as possible.”
• Binance.US will repay crypto to Voyager’s customers “in kind.”
• Voyager’s native token VGX pumped 32% on the news.

Binance.US, the American arm of the largest centralized cryptocurrency exchange, Binance, has agreed to buy the assets of the bankrupt crypto lender Voyager Digital, the firm said on Monday.

According to Voyager, Binance.US will buy its assets for $1.02 billion. The sum is comprised of “the fair market value” of Voyager’s cryptocurrency portfolio and an “additional consideration” equal to $20 million of incremental value.

The bankrupt lender said that Binance.US’ bid “sets a clear path forward for Voyager customer funds to be unlocked as soon as possible” and that Chanpeng Zhao’s exchange will repay customers “in kind.”

“The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities,” Voyager said in a statement. Voyager, which went bankrupt in July, also said that Binance.US will make an initial $10 million “good faith deposit” and will reimburse the company for expenses up to $15 million.

“Should the deal not close by April 18, 2023, subject to a one-month extension, the agreement allows Voyager to immediately move to return value to customers,” the statement said. Voyager’s native token VGX went up by more than 32% on the news, according to data from CoinGecko. It’s currently trading at $0.364, 97% down from its all-time high of $12.47.

Voyager’s Second Chance

Binance.US is the second potential buyer of Voyager’s assets. FTX.US, Sam Bankman-Fried’s exchange that went bankrupt in a spectacular fashion last month, had won the bid to buy Voyager’s assets.

FTX had beaten its competitors Wave Financial and Binance by offering $1.4 billion for Voyager’s assets. The deal was supposed to honor senior claims to be paid out in full and reimburse unsecured creditors about 72% of the value of their assets.

However, those acquisition plans crumbled when FTX announced its abrupt bankruptcy after a bank run sparked by Binance CEO Chagpeng Zhao’s decision to dump FTT tokens.

Voyager paused withdrawals and filed for bankruptcy last July. The firm had dire liquidity issues related to its exposure to a $650 million loan default by now also bankrupt crypto hedge fund Three Arrows Capital.

On the Flipside

• While FTX may have had its own motives to rescue Voyager, it’s unclear why Binance and Changpeng Zhao is buying Voyager’s assets now.

Why You Should Care

Voyager was one of the largest crypto lenders in the market. Investors who had funds with it should rejoice after hearing the news that Binance.US is buying Voyager’s assets.

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See original on DailyCoin