Crypto exchange Binance.US will buy Voyager Digital’s assets out of bankruptcy in a deal worth $1.022 billion, a discount to an earlier, failed sale struck with FTX.
Voyager selected Binance.US as the highest and best bidder after reviewing options, the company said in a statement Monday. The bid “sets a clear path forward for Voyager customer funds to be unlocked as soon as possible,” according to the statement, and the company will aim to return crypto to its customers in kind.
Binance US to Buy Bankrupt Voyager Digital's Assets for $1 Billion
As an expert in the field of cryptocurrency exchanges and financial transactions, I can confidently provide insights into the article you mentioned. My in-depth knowledge of the crypto industry enables me to dissect the key concepts and implications behind the reported news.
The article discusses a significant development in the cryptocurrency space, involving two prominent platforms: Binance.US and Voyager Digital. Binance.US, a well-known cryptocurrency exchange, is set to acquire assets from Voyager Digital through a bankruptcy deal valued at $1.022 billion. This transaction comes after a previously failed sale agreement with FTX.
Now, let's break down the key concepts in the article:
Binance.US:
Binance.US is the American arm of Binance, one of the world's largest and most influential cryptocurrency exchanges.
The platform operates within the regulatory framework of the United States and provides a range of cryptocurrency trading services to its users.
Voyager Digital:
Voyager Digital is another player in the cryptocurrency space, offering services related to digital asset trading and investment.
The article mentions that Voyager Digital is facing bankruptcy, leading to the sale of its assets.
Acquisition and Bankruptcy Deal:
Binance.US is acquiring assets from Voyager Digital as part of a bankruptcy deal.
The transaction is valued at $1.022 billion, indicating a substantial financial commitment by Binance.US.
Failed Sale with FTX:
Prior to the agreement with Binance.US, Voyager Digital had an unsuccessful sale negotiation with FTX.
The article doesn't delve into the reasons for the failure of the previous deal with FTX.
Voyager's Selection of Binance.US:
Voyager Digital chose Binance.US as the "highest and best bidder" after reviewing its options.
The decision is portrayed as a positive step, setting a clear path forward for unlocking Voyager customer funds.
Return of Crypto to Customers:
The article states that the deal with Binance.US aims to facilitate the return of crypto assets to Voyager Digital's customers.
This suggests a focus on ensuring the welfare of the platform's user base even amid financial challenges.
In summary, the acquisition of Voyager Digital's assets by Binance.US is a notable event in the cryptocurrency industry, showcasing the dynamics of business transactions and financial strategies within the crypto space. The article highlights the importance of regulatory compliance, financial stability, and customer welfare in the evolving landscape of cryptocurrency exchanges.
In December, Binance.US entered the fray with a proposal worth around $1 billion at the time and that would have brought in about $20 million in cash for creditors of the failed firm. On Tuesday, Binance.US sent Voyager a four-paragraph legal notice informing the company that the transaction was being canceled.
Voyager Digital was taken by surprise when Binance.US canceled a $1 billion deal to buy its assets on Tuesday. The exchange was still showing interest as recently as last week, Voyager's attorneys said in a New York courtroom on Wednesday.
April 25 (Reuters) - Binance.US has called off its $1.3 billion deal to buy assets of bankrupt crypto lender Voyager Digital, citing a "hostile and uncertain regulatory climate."
According to the company, the estate has $1.334 billion in assets, which equates to 75.68% of the total value of customer claims against Voyager's estate. Customers will receive an initial recovery estimated to be 35.72% of their claim amount due to certain holdback.
Bankrupt crypto lender Voyager Digital is closing down following two failed attempts to sell itself. According to a Friday (May 5) court filing, the company will self-liquidate its assets and wind down operations.
Customers who deposited unsupported cryptocurrencies on Voyager may not receive those specific cryptocurrencies back as part of the repayment process. Instead, Voyager plans to refund customers in the stablecoin USDC for unsupported cryptocurrencies and Voyager's proprietary VGX token deposits.
For those with any of the 38 “unsupported tokens,” including Solana's SOL and Algorand's ALGO, Voyager will liquidate everything and pay customers back with USD coin (USDC), a stablecoin.
Voyager Digital Ltd.won court approval to sell itself to Binance.US, the US arm of the world's biggest crypto exchange, after four days of contentious bankruptcy hearings in which state and federal regulators joined a handful of investors in opposing the approximately $1 billion deal.
Earlier this week, Binance.US broke off its $1.3 billion deal to buy crypto broker Voyager Digital's assets due to a “hostile and uncertain regulatory climate.” The announcement comes about nine months after Voyager filed for bankruptcy.
As of May 2023, a restructuring plan proposed having Voyager customers recover 35.7% of their claims in cryptocurrency or cash. The crypto exchange settled with the FTC for $1.65 billion in monetary relief in November 2023.
Voyager initiated Chapter 11 bankruptcy proceedings in July 2022 due to serious events in the crypto market, such as the collapse of the Terra ecosystem in May. By May 2023, a restructuring plan proposed that Voyager customers could recoup 35.7% of their claims in either cryptocurrency or cash.
In the federal court complaint, the FTC charges that from at least 2018 until it declared bankruptcy in July 2022, Voyager used promises that consumers' deposits would be “safe” to entice them to hand over their funds.
How do I withdraw Voyager crypto to Exodus? You can now withdraw your Voyager crypto from the Voyager app and send it to your Exodus self-custody wallet. If you need to, you can download Exodus here: Download Exodus. From June 23, 2023, you will have 30 days to complete your withdrawal.
If a bank fails, the FDIC insures deposits. Investors should know that if their crypto exchange goes out of business, no government agency will make them whole. That's different from a bank, where the government insures funds up to account and institution limits.
Earlier this week, Binance.US broke off its $1.3 billion deal to buy crypto broker Voyager Digital's assets due to a “hostile and uncertain regulatory climate.” The announcement comes about nine months after Voyager filed for bankruptcy.
Binance.US terminated an agreement to purchase the bankrupt crypto broker Voyager Digital Holdings Ltd., less than a week after federal regulators dropped their efforts to halt the deal in court.
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