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Cryptocurrency: Binance acquires Voyager’s assets as FTX deal collapsed

Photo by: Kanchanara/Unsplash

Binance, a cryptocurrency company and exchange platform, has taken over the deal to buy Voyager’s assets for $1 billion. The agreement comes after its deal with FTX failed since it also went under not long ago.

Sam Bankman-Fried’s company originally won in a U.S. bankruptcy auction for Voyager, but just weeks later, FTX itself filed for bankruptcy. Thus, the deal is off, and Binance and other crypto companies took the chance to bid for the takeover of the digital currency lender. In the end, Binance won the race and confirmed to acquire Voyager’s assets.

The crypto lender announced its agreement with Binance on Monday, Dec. 19. The estimated value of the asset acquisition is $1.02 billion.

“Voyager Digital Ltd. announced today that its operating company Voyager Digital LLC selected U.S. exchange BAM Trading Services Inc. (doing business as ‘Binance US’) as the highest and best bid for its assets after a review of strategic options with the core objective of maximizing the value returned to customers and other creditors on an expedited timeframe,” Voyager stated in the release.

At any rate, it was in July when Voyager filed for Chapter 11 bankruptcy protection after Three Arrows Capital crypto hedge fund defaulted on a substantial loan. Since it was unable to pay Voyager more than $650 million it owes, the crypto lender folded. At that time, Voyager had about $1.3 billion in assets compared to $5.8 billion worth at the end of 2021, as per CNBC.

Now, that it has been confirmed that Binance is buying Voyager’s assets, it is not yet clear how this pending acquisition may affect the crypto firm’s stake in the FTX-Alameda bankruptcy. As part of the deal, it was agreed that Binance would deposit $10 million and compensate Voyager for certain expenses of up to $15 million.

Meanwhile, Reuters reported that almost $2 trillion was swept away from the crypto industry this year alone and these unfortunate events led to increasing interest rates and heightened worries of an economic downturn. Major companies such as Three Arrows Capital and Celsius Network were eliminated due to the situation, and more are also at risk.

Photo by: Kanchanara/Unsplash

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