Cryptocurrency brokerage Voyager Digital announced today that it has entered into a definitive agreement with Binance.US, the American arm of the world’s largest digital asset exchange, to acquire its assets. The acquisition will help Voyager customers to unlock over $1.022 billion in funds as soon as possible.
Voyager attributed its bankruptcy to a $670 million loan default by Three Arrows Capital, and a subsequent crash of FTX which had promised to acquire Voyager earlier on. The legal assertions that the enterprise has against Three Arrows Capital reside within the insolvency estate and any upcoming payment on these and other un-exempted claims will be spread across the creditors of the estate.
Customers Have Balances Worth $1.002 Billion Locked on Voyager
Voyager Digital is yet to ascertain the total value of its crypto asset portfolio in days to come. As per present market costs, customer funds are approximately $1.002 billion and an additional sum of $20 million towards newfound value.
According to the announcement, Voyager will transfer its cryptocurrency brokerage business and associated assets. Binance will from there hold and manage the assets. Additionally, Voyager’s customers will receive any balances they have on the platform.
The move comes as part of Binance.US’s strategy to build an ecosystem of products and services that make it easier for customers to buy, sell, and store digital assets.
Meanwhile, Binance.US is committed to funneling funds back to crypto traders in accordance with judicial directives and the platform’s capabilities.
Binance.US has set aside $10 million as a token of its commitment and shall reimburse Voyager for expenses to an upper limit of USD 15 million. Both parties have up to April 18, 2023, to conclude the agreement. However, Binance Exchange will have a limited extension period for paying up investor returns.
Bankruptcy court approval will take place in 2023
On the 5th of January 2023, Voyager Digital LLC will seek approval from the Bankruptcy Court. This will allow the court to evaluate the process and provide a green light to carry out the deal.
This transaction with Binance.US will culminate in a Chapter 11 plan which requires the approval of creditors and the fulfilment of all pertinent closing conditions.
Nonetheless, upon confirmation from the Bankruptcy Court, Binance and Voyager will have to quickly round up the deal and conclude the financial arrangements.
On July 5, 2022, Voyager opted to initiate a reorganization in an effort to provide customers with the greatest return. ATZCrypto reached out to a spokesperson of Voyager Digital who revealed more details about the deal would surface with time.
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