• Binance.US probably successful with bid for Voyager assets
• Voyager customers could get up to 73 percent of their deposits back
• Deal still under consideration
The crash in the crypto market made waves last year. One of the victims: the crypto exchange Voyager Digital. In the summer of 2022, this had faltered as a result of the events surrounding the crypto hedge fund Three Arrows Capital, which had also defaulted on payments to Voyager due to the massive price slump in cryptocurrencies and finally had to officially file for bankruptcy. Voyager Digital’s official bankruptcy announcement followed shortly afterwards.
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A rescue by the crypto exchange FTX, which wanted to take over the competitor in September for $1.422 billion, fell through after the potential buyer came under pressure and Voyager put up for sale again.
Binance.US wins the contract
The next buyer was already in the starting blocks: Binance.US officially announced the planned takeover of Voyager at the end of the year: the US arm of the world’s largest crypto exchange wants to make 1.3 billion dollars available for the sale. According to Reuters, a US court has now waved the plans through: bankruptcy judge Michael Wiles approved Voyager’s restructuring plan, which is largely based on the takeover by Binance. Wiles did not see any concerns that customer deposits would be at risk as a result of the deal.
Specifically, Binance.US will pay Voyager $20 million, after which the crypto customer deposits still on the crypto exchange, which are valued at over $1 billion, will be transferred to Binance.
Good news for Voyager customers
This is good news for Voyager’s aggrieved creditors, as a finalization of the deal could mean they could recover 73 percent of their deposits. Binance CEO Changpeng Zhao hailed the judge’s decision on Twitter:
Protect users.
“The judge’s decision comes just over a week after 97% of 61,300 Voyager account holders were found to favor the current https://t.co/hSHrrlF7o7 restructuring plan, according to a Feb. 28 filing.” https://t.co/2yB4cztEEQ
– CZ ? Binance (@cz_binance) March 9, 2023
And Binance.US also reacted positively to the current developments and stated: “Our goal has always been to give customers their cryptocurrencies back as quickly as possible and to give users the opportunity to make their own decisions about their own assets. We are pleased We look forward to completing the transaction and welcoming Voyager customers to Binance.US where they can expect the highest level of service and support.”
We are pleased the US Bankruptcy Court for the Southern District of New York agrees with 97% of Voyager customers who voted that our plan provides the best path forward for Voyager users to re-take control of their assets.
Our goal has always been to https://t.co/AZwoBOgsqS… https://t.co/PJI0GqFWtj pic.twitter.com/T4as5RKpxl
– Binance.US ?? (@BinanceUS) March 7, 2023
Deal is still under review
Voyager can still withdraw from the purchase agreement, and advisors to the insolvent crypto lender are currently reviewing the deal. This could take up to four weeks.
In addition, the Committee on Foreign Investment in the United States (CFIUS) is investigating the deal with a view to national security risks associated with foreign investments, according to Reuters.
Palo Alto-based Binance.US previously said it was “completely independent” from its international parent company Binance, which is owned by Chinese-born, Singapore-based Changpeng Zhao.
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