The world’s leading crypto exchange platform Binance is set to purchase Voyager Digital’s assets after it emerged as the highest bidder.
Binance agreed to buy the bankrupt crypto platform assets for $1.022 billion, as it seeks to return crypto to voyager digital’s customers.
Speaking on the recent acquisition of the company, Voyager Digital wrote on Twitter, “After a review of strategic options focused on maximizing value returned to customers on an expedited timeframe, Binance.US has been selected as the highest and best bidder for our assets.”
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After a review of strategic options focused on maximizing value returned to customers on an expedited timeframe, @BinanceUS has been selected as the highest and best bidder for our assets. Press release below. More information to follow for customers.https://t.co/HcESIpIzgm
— Voyager (@investvoyager) December 19, 2022
Reports reveal that Binance is also spending another $20 million on other assets of incremental value.
Its recent acquisition plan will enable voyagers’ customers to connect with Binance and receive their crypto assets based on their previous positions on Voyager Digital.
Also commenting on the deal, Binance CEO Brian Shroder said via a statement “Our bid is a reflection of our guiding principle that customers should come first. Our goal is simple: return users their cryptocurrencies on the fastest timeline possible.
“We hope our selection brings to an end a painful bankruptcy process which saw customers unfairly dragged into it at no fault of their own. Upon close of the deal, users will be able to seamlessly access their digital assets on the Binance.US platform where they will continue to receive future disbursements from the Voyager estate.”
However, the deal hasn’t been sealed yet, due to the Chapter 11 process, which mandates a court hearing on January 5, 2023, in which the Bankruptcy Court will decide if it approves the deal.
Recall that Voyager digital, a high-profile crypto broker in July 2022 filed for bankruptcy, citing market volatility and the collapse of crypto hedge fund three arrows which owed it $650 million.
In its bankruptcy filing, the firm disclosed that it had between $ 1 billion to $10 billion in assets with more than 100,000 creditors, while stating that it owed Sam Bankman-Fried’s Alameda research $ 7 million as well as several other firms.
According to the chief executive of Voyager Stephen Ehrlich, he disclosed that the platform was built to empower investors, but was however negatively impacted following the prolonged volatility and contagion in the crypto markets over the past few months.
He further disclosed that all these necessitated the firm to file for chapter 11 bankruptcy while noting that this move provides for an efficient and equitable mechanism to maximize recovery.
Voyager’s bankruptcy marks another episode in crypto’s rocky year, as the recent collapse of FTX has sent shockwaves to the industry with several other crypto exchange companies filing for bankruptcy, while some have seen a decline in their valuation.