Binance US exchange announced to purchase assets of Voyager Digital in a deal worth $1.02 billion after failed talks with now bankrupt FTX exchange.
Voyager Digital is New York based cryptocurrency brokerage company. It filed for Chapter 11 bankruptcy protection in July after Singapore based crypto hedge fund Three Arrow Capital failed to pay back the loan worth $670 million issued by the company.
Since July, Voyager Digital is looking for the best bidder to purchase its assets. Earlier, the company struck deal with FTX exchange headed by Sam Bankman-Fried. FTX won the auction in September to buy Voyager at $1.4 billion including $51 million cash deal.
The deal is dead in the water after FTX goes bankrupt in November 2022 and took down the crypto market along with it. As we speak, Voyager has chosen Binance.US as the highest bidder for purchasing its asset.
Binance.US has valued Voyager’s total portfolio at $1 billion (current price) and includes $20 million of incremental value. The deal needs the approval of the court, the hearing is scheduled for January 5th 2023.
According to the statement released by Voyager “the bid sets a clear path for its customer funds to be unlocked after it gets approval from the bankruptcy court”.
The news came as a relief to customers who are awaiting the release of funds since July after Voygar froze withdrawals amid concerns of liquidation. All eyes are on Celsius, the crypto lending firm that filed for bankruptcy in the same period and has frozen customers’ withdrawals since then.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.