As Binance makes itself at the top of the headline in the crypto market by raising concerns regarding its proof-of-reserves audit, the crypto giant now attracts fresh attention after signing a deal with a popular crypto firm to acquire its assets.
Recently, Voyager Digital Limited secured the best deal from crypto exchange giant Binance US to sell its assets after reviewing a strategic bidding session with the main objective of returning the platform’s users and other creditors within a specific timeframe. Value was to be maximized. ,
Binance US To Acquire Voyager’s Assets With $1 Billion Valuation
This year has been rough and tough for the entire crypto space after FTX’s bankruptcy filing and recent controversies made on Binance’s audit reports. Voyager Digital, which sits on the top of the crypto space with a robust user base of 3.5 million and $5.9 billion worth of assets, has collapsed to the ground after filing its chapter 11 bankruptcy on 6 July. However, the crypto firm once tried to sell its assets to FTX’s owner SBF for $1.42 billion in September, but the deal went in vain after FTX drastically collapsed in November.
However, Binance US now has a clear path to return Voyager users’ frozen funds as the crypto giant won the highest bid of $1.022 billion to acquire Voyager’s assets. Binance clarified the agreement as it was composed of the current position and market value of Voyager Digital, with an additional consideration of $20 million of incremental value.
Voyager declared that the company’s claims against Three Arrows Capital remain in the state of bankruptcy, and any further recovery on the shares will be returned to the creditors.
Binance Shapes Voyager Amidst Bankruptcy
In compliance with the court documents, the primary objective of Binance US is to return the funds of users and investors of Voyager Digital. In addition, Binance will make a $10 million goodwill deposit to offset Voyager’s expenses, with a maximum spend of US$15 million. The deal is likely to close with an extension of one month from April 18, 2023.
The next hearing is scheduled on 5 January 2023, where Voyager will gain bankruptcy court approval to execute the asset purchase with Binance US completely. Additionally, it has been made clear that Binance will work closely with Voyager to complete each transaction to comply with the Chapter 11 plan. The timeline and return of locked assets to customers will be made public, and it can be viewed by visiting the Voyager case website https://cases.stretto.com/Voyager.
Voyager officially stated, “Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause Voyager’s actual results, performance or achievements to differ materially from any of its future results, performance or achievements.” may be expressed or implied by forward-looking statements.
Binance has widely dominated the crypto industry as it controls over half of the global crypto trading volume. However, the crypto exchange has caught the eye of several US regulatory bodies, including the U.S. Justice Department, in a possible money-laundering case and severe violations in the crypto market.
Despite being the savior amid the collapse and bankruptcy of several firms, Binance has seen a sharp decline in the confidence of its users to store crypto funds on the platform as concerns about audit reports spiked in the past few days, with withdrawals rising. has been seen. ,
However, Binance seems to provide clear reports to the crypto community, and it may soon wipe out customers’ concerns by barring the platform from becoming another FTX.
