According to a new press release published on Dec. 19, cryptocurrency exchange Binance.US will acquire assets of bankrupt crypto lender Voyager Digital for $1.022 billion. After a review of strategic options, the firm said that Binance.US represented the “highest and best bid for its assets.”
The $1.022-billion bid consists of the fair market value of Voyager’s cryptocurrency portfolio at a to-be-determined date in the future, along with an additional consideration equal to $20 million of incremental value.
“The Company’s claims against Three Arrows Capital remain with the bankruptcy estate, and any future recovery on these and other non-released claims will be distributed to the estate’s creditors. The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities.”
The deal is set to close by April 18, 2023. Binance has agreed to make a $10-million deposit in good faith and will reimburse Voyager for certain expenses up to a maximum of $15 million. A hearing will be held by the presiding bankruptcy court to approve the purchase agreement on Jan. 5, 2023. In addition, the sale is subject to a creditor’s vote and other customary closing conditions.
Voyager paused withdrawals in July and filed for bankruptcy amid liquidity issues arising from its exposure to a $650-million loan default from defunct hedge fund Three Arrows Capital. Cointelegraph previously reported in October that troubled cryptocurrency exchange FTX US secured a bid for Voyager’s assets for $1.4 billion. The previous deal enabled senior claims to be paid out in full and allowed unsecured creditors to recover approximately 72% of the value of their accounts.
In a Twitter post on Dec. 20, Voyager's committee of unsecured creditors said that it believes that the Binance.US bid "appears to be the best transaction at this time," though said it was "still evaluating" given a limited timeframe to evaluate the decision — having only been made aware of Voyager's intention to accept the bid on Dec. 8.
Update Dec. 20, 2:23 am UTC: Added a statement from Voyager's committee of unsecured creditors.