Voyager said it has roughly $1.3 billion of crypto on its platform and holds over $350 million in cash on behalf of customers at New York's Metropolitan Commercial Bank.
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Binance.US will acquire the crypto assets and customer deposits of Voyager Digital in a $1.02 billion deal, weeks after a planned FTX-Voyager acquisition failed as a result of FTX's collapse and Sam Bankman-Fried's arrest.
Despite the nominal independence, Binance.US operates as a "de facto subsidiary" of the international Binance business, according to Reuters.
Voyager filed for bankruptcy protection in July 2022, after crypto hedge fund Three Arrows Capital (3AC) defaulted on a significant loan position extended by Voyager. At the time of filing, the crypto exchange had approximately $1.3 billion in assets but was owed over $650 million by 3AC, compared with $5.8 billion worth of assets at the end of 2021.
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Voyager Digital reaches agreement to sell assets to Binance
In a press release, Voyager said that Binance.US' offer represented "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."
Binance.USis nominally independent of the international Binance. Binance CEO Changpeng "CZ" Zhao establishedBinance in 2017, which had over 1 million U.S. users within five months of founding. Zhao would eventually separate out his U.S. operations intoBinance.USin2019, to have it servea "regulatory inquiry clearing house," to catch and contain concerns from federal regulators, according toReuters.
More than 1.7 million Voyager users were waiting to discover what would happen to their crypto. When FTX's deal was announced, users were to receive an account credit alongside custody of certain cryptocurrencies that FTX supported. But weeks later, after the exposure of a multibillion-dollar balance sheet hole forced FTX into bankruptcy, Voyager, like many other FTX acquisition targets, was left in a lurch.
It is not yet clear how Voyager's pending acquisition may impact Binance's stake in the FTX-Alameda bankruptcy.
Representatives for Voyager did not immediately respond to comment.
Correction: Binance.USwas established in2019. An earlier version misstated the year.
As an expert with a deep understanding of the cryptocurrency industry and financial markets, I have closely followed the developments in the field, including recent events involving major players like Voyager Digital, Binance.US, and FTX. My knowledge extends to the intricacies of crypto exchanges, financial transactions, and the legal aspects surrounding them.
In the article you provided, several key concepts and events are discussed:
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Voyager Digital's Financial Situation:
- Voyager Digital, a cryptocurrency exchange, filed for bankruptcy protection in July 2022.
- The bankruptcy filing was a result of Three Arrows Capital (3AC), a crypto hedge fund, defaulting on a significant loan position extended by Voyager.
- At the time of filing, Voyager had approximately $1.3 billion in assets, but it was owed over $650 million by 3AC.
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Binance.US Acquisition of Voyager's Assets:
- Binance.US, a prominent cryptocurrency exchange, is set to acquire the crypto assets and customer deposits of Voyager Digital in a $1.02 billion deal.
- This acquisition comes after a failed FTX-Voyager deal, which was impacted by FTX's collapse and the arrest of Sam Bankman-Fried, the founder of FTX.
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Binance.US Relationship with Binance:
- Despite nominal independence, Binance.US is described as a "de facto subsidiary" of the international Binance business, according to Reuters.
- Binance CEO Changpeng "CZ" Zhao established Binance in 2017 and later separated U.S. operations into Binance.US in 2019 to address regulatory concerns.
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FTX-Voyager Acquisition Failure:
- A planned acquisition of Voyager by FTX failed due to FTX's collapse, triggered by the exposure of a multibillion-dollar balance sheet hole.
- Voyager, along with other FTX acquisition targets, faced uncertainties after FTX declared bankruptcy.
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Uncertainty Regarding Binance's Stake in FTX-Alameda Bankruptcy:
- The article mentions that it is not yet clear how Voyager's pending acquisition by Binance.US may impact Binance's stake in the FTX-Alameda bankruptcy.
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Voyager's Strategic Decision:
- Voyager stated in a press release that Binance.US' offer represented the "highest and best bid for its assets" after a review of strategic options, aiming to maximize value returned to customers and creditors.
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Correction:
- A correction in the article clarifies that Binance.US was established in 2019, not the previously misstated year.
This comprehensive overview showcases the complex interplay of financial transactions, acquisitions, regulatory considerations, and the challenges faced by cryptocurrency exchanges in a rapidly evolving industry. If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.
