Following a study, cryptocurrency company Voyager Digital Ltd said on Monday that it will sell its assets to Binance.US in a deal for roughly $1 billion.
In order to acquire the assets of the bankrupt cryptocurrency lender, Binance.US has negotiated an agreement with Voyager Digital, outbidding rivals like CrossTower, Wave Financial, and INX.
The largest cryptocurrency exchange’s U.S. division, Binance.US, claimed in an official post that the proposal “sets a clear path forward for Voyager customers’ funds to be unlocked as soon as possible, and returned to them in the form of the cryptocurrencies previously held in their Voyager accounts.”
Binance.US, situated in Palo Alto, California, which is a separate legal organization from Binance.com and has a licensing arrangement with it, will deposit $10 million and repay Voyager for some costs up to $15 million.
This year, the crypto market has lost about $2 trillion in value due to rising interest rates and growing concerns about an impending recession. Moreover, the downturn has decimated crucial business actors like Celsius Network and Three Arrows Capital.
The greatest hit, though, was when the largest cryptocurrency exchange FTX sought bankruptcy protection last month. Major exchanges’ user money holding procedures are currently under intensive regulatory investigation as a result of its fast drop.
After Voyager Digital filed for Chapter 11 bankruptcy protection in July, the company announced in September that FTX had won an auction for its assets in an offer estimated to be worth $1.42 billion.
At a hearing on January 5, 2023, Voyager announced on Monday that it will ask the Bankruptcy Court to approve the agreement with Binance.US.
Bankman-Fried left his position as CEO and FTX filed for bankruptcy last month after traders withdrew billions from the site in just three days and a competing exchange, Binance, abandoned a rescue plan.
After FTX warned of a “serious liquidity issue,” the drop has increased concerns about the viability of the cryptocurrency industry.
