According to Binance’s blog post, Binance US is Voyager Agreement to acquire Digital Ltd. assets. The acquisition “sets a clear path for Voyager’s customer funds to be unlocked as quickly as possible,” the statement said.
Binance Reveals US Subsidiary to Purchase Voyager Digital Assets for $1 Billion, Company Bid Seeks Bankruptcy Court Approval
End of June 2022 At the time, Voyager Digital had secured $500 million worth of credit from Alameda Research, but by July 1, the TSX-listed Voyager had stopped trading, depositing, and withdrawing. Voyager suffered heavy losses from Three Arrows Capital (3AC) as 3AC reportedly owed Voyager $655 million of her.
On July 6, Voyager filed for Chapter 11 bankruptcy protection, citing 3AC’s loan default as the reason. By the end of July, the U.S. Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Board issued a joint letter to Voyager demanding a suspension and retraction of her FDIC claims made by Voyager or advertised on its website. requested.
It was then believed that FTX would help the company and buy Voyager’s assets before Sam Bankman Freed and his FTX were ousted. But just before FTX’s cracks began to emerge, Texas regulators and the state’s attorney general opposed FTX’s purchase of Voyager. On December 19, 2022, with FTX gone, Binance revealedthat Binance US had swooped in to buy Voyager’s assets.
The company said that Binance US’s bid “provides a clear path for Voyager customers’ funds to be unlocked as soon as possible and returned in the form of cryptocurrencies previously held in their Voyager accounts.”
“Our bid reflects our guiding principle of putting the customer first,” Binance US CEO and President Brian Shroder said on Monday. Shroder continues:
We hope that our choices will end a painful bankruptcy process where customers were wrongfully dragged in through no fault of their own. We hope that once the transaction is complete, users will be able to seamlessly access their digital assets on the Binance US platform and continue to receive future payments from their Voyager assets.
Binance’s bid follows speculation and rumors surrounding the world’s largest cryptocurrency exchange, with criticism of the company’s Proof of Reserve (POR) efforts prompting accounting firm Mothers to audit Binance’s POR. A Reuters report published Dec. 12 claimed that the U.S. Department of Justice (DOJ) was investigating Binance. Over $3 billion in crypto assets withdrawn Stablecoin BUSD saw its supply drop by over $3 billion in three days starting Dec 13.
Binance on Dec 19 , Voyager Digital “seeking bankruptcy court approval, Voyager Digital LLC and Binance US at hearing on Jan. 5, 2023.” Binance’s request may be challenged before the public hearing.
Binance further elaborated that Voyager customers should heed an email from Voyager Digital “about next steps.” Voyager also confirmed the purchase on Monday, saying the assets were acquired for her $1.022 billion, which includes all of Voyager’s crypto assets. In addition to Binance US, INX, Wave Financial and Crosstower have also attempted to bid on Voyager’s remaining assets.
“Binance US will make a good faith deposit of her $10 million and reimburse Voyager for certain expenses up to $15 million,” the announcement details. “If the contract is not executed by April 18, 2023 subject to a one-month extension, the contract allows Voyager to move immediately to return value to customers,” Voyager updated.
Image Credits: Shutterstock, Pixabay, Wiki Commons