Binance.US, a cryptocurrency exchange, is reportedly paying $1.022 billion to purchase the assets of defunct cryptocurrency lender Voyager Digital, as per an announcement issued on December 19.
The company concluded that Binance.US had made the “highest and best bid for its assets” after considering all of its strategic alternatives.
The $1.022 billion is a fair market value of Voyager’s cryptocurrency portfolio at a period in the future that has not yet been determined, as well as an extra consideration with the incremental value of $20 million.
The platform states that Voyager’s claims against Three Arrows Capital “will 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.”
The committee of unsecured creditors for Voyager declared on Twitter on December 20 that the Binance.US bid “appears to be the best transaction at this time,” but that it was “still evaluating” the decision due to the little amount of time it had since it was only informed of Voyager’s intention to accept the bid on December 8.
Voyager has been assured that Binance will make a good faith deposit of ten million dollars and that Binance will refund Voyager for certain costs up to a maximum of fifteen million dollars.
On January 5, 2023, the appointing bankruptcy court will hold a hearing to finalize the purchase deal. A creditor vote and other standard closing conditions must be met before the sale. The closing date for the deal is scheduled for April 18th, 2023.
Voyager Filed for Bankruptcy Earlier this Year
Amid liquidity concerns caused by its exposure to a $650 million loan default from insolvent hedge fund Three Arrows Capital, Voyager halted withdrawals in July and filed for bankruptcy. After having an initial bid of $1.2 billion rejected, FTX was able to secure the $1.4 billion proposal in September.
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