Bankrupt crypto lender Voyager Digital will sell its assets worth $1.02 billion to Binance.US, the U.S. subsidiary of crypto exchange Binance, the company announced in a statement on Monday. Binance.US, also known as BAM Trading Services Inc, has become the highest bidder in a bid by Voyager Digital to sell its assets. The development comes on the heels of the dramatic collapse of the world’s second-largest crypto exchange, FTX, which filed for bankruptcy last month, weeks after winning a bid to buy Voyager Digital’s assets.
Palo Alto-headquartered Binance.US, which operates as an independent legal entity and has a licensing agreement with crypto exchange Binance, will make a good faith deposit worth $10 million. dollars and will reimburse Voyager for certain expenses up to a maximum of $15 million. The purchase price includes $20 million in payments to Voyager customers and $1 billion in payments to Voyager customers.
“If the agreement is not completed by April 18, 2023 subject to a one-month extension, the agreement allows Voyager to move immediately to returning value to customers,” the company said. company in a press release.
“Voyager Digital LLC will seek bankruptcy court approval to enter into the asset purchase agreement between Voyager Digital LLC and Binance.US at a hearing on January 5, 2023,” the company added. The company filed for bankruptcy in July this year, after hedge fund Three Arrow Capital defaulted on loans made by Voyager.
In September, struggling crypto exchange FTX won an auction to acquire Voyager Digital’s assets worth $1.42 billion. The offer, which included $1.31 billion worth of Voyager cryptocurrency and an additional $111 million, was intended to help the crypto company go bankrupt and protect Voyager customers and clients. However, the acquisition fell through due to FTX fallout.
Kirkland & Ellis LLP, Moelis & Company LLC and Berkeley Research Group are advisors to Voyager Digital, while Latham & Watkins LLP has become advisor to Finance.US.
Last week, former FTX CEO Sam Bankman-Fried, who is also billed as the “crypto king”, was arrested in New York. A lawsuit has been filed by the US Department of Justice and the Securities and Exchange Commission (SEC) for deceiving FTX investors and embezzling funds from the exchange by funneling the money to its trading firm Alameda Research. He has been charged in the United States on eight counts, including conspiracy, wire fraud and money laundering, and is likely to face extradition to the United States.
Last month, crypto exchange BlockFi Inc and eight of its subsidiaries filed for bankruptcy in a knee-jerk reaction to the FTX fallout. Through bankruptcy, the company sought protection to restructure, settle debts and recover money from investors. BlockFi has over 1,00,000 creditors with liabilities and assets ranging from $1 billion to $10 billion.
FTX-US, which is an American subsidiary of FTX, is BlockFi’s second-largest creditor and has provided a loan worth $275 million to the company. Another crypto exchange, Japan-based Bitfront, has decided to shut down in the coming months, due to huge competition in the rapidly growing crypto industry. It suspended new registrations and credit card payments.