Binance.US remained successful in winning the bid to obtain the assets of Voyager (the defunct crypto company). Voyager declared that the top bidder was Binance.US and the bid’s value was approximately $1.022 billion. The target of the bid is to be returned to the consumers. It is noteworthy that the initial winner of the bid was FTX however the contract collapsed after the recent bankruptcy of the crypto exchange.
Binance.US to Obtain Voyager’s Assets to Fulfill the Chapter 11 Bankruptcy Plan
As included in the bid, the US subsidiary of Binance will deposit almost $10M with honest intentions. Apart from that, Binance.US will bear nearly $15M in expenses of Voyager. In the contract, it is also mentioned that Voyager Digital LLC will pursue authorization from the bankruptcy court to get into the asset buyout contract with Binance.US. This move will be made on the 5th of January in the coming year.
The respective contract will be accomplished as a strategy under the Chapter 11 proceedings of Voyager. Voyager halted withdrawals in July this year and subsequently submitted a Chapter 11 bankruptcy filing. As per Binance.US the consumer funds of Voyager could be unlocked as shortly as possible as the path is clear. This signifies that the customers of Voyager could get their assets back before their previous expectations.
The contract requires court approval and votes from the creditors along with the routine closing conditions. After these things, the transfer of the funds will be carried out. The effective bid made by FTX for the assets of Voyager equaled $1.4B back in September this year but the crypto exchange became bankrupt and the plan backfired in November.
Voyager Digital crashed in the middle of this year after a decline witnessed in the prices of the crypto assets when many centralized platform dealing with digital assets collapsed one after the other. Formerly, the reports pointed out that the chief cause at the back of Voyager’s crash was its exposure to Three Arrows Capital (3AC) – a crypto-based hedge fund. The plans of Voyager further faded as the crypto empire of Bankman-Fried slumped.
Previously, a $485M credit line was secured by the crypto broker from Bankman-Fried’s trading giant Alameda Research. Other centralized finance firms such as FTX, Celsius, and BlockFi additionally submitted their bankruptcy filings during this year because of the enormous pressure of the bear market. They referred to the liquidity shortage, exposure to the rest of the virtual currencies companies, and market volatility to be the potential reasons at the back.
Binance.US Outcompetes Industry Behemoths in the Bid
In the agreement between Voyager and Binance US, it has been clarified that if the respective contract is not completed by the 18th of April in the next year – subject to the extension of up to 1 month – Voyager will have the right to rapidly provide the value back to its clients. In the winning bid of Binance US, the crypto exchange has been successful in leaving behind the giant industry players taking into account, INX, Wave Financial, and CrossTower.
The President and Chief Executive Officer at Binance.US, Brian Shroder, also remarked on the respective move. He stated that this bid points toward their guiding norm that the consumers should be given priority in any case. The executive added that they will attempt to provide the clients with their crypto assets in the shortest possible time as they have been unfairly pulled without their fault.
The post Binance US Enters Into An Agreement To Purchase Voyager Digital’s Assets appeared first on CryptocyNews.com.
from CryptocyNews.com https://www.cryptocynews.com/binance-us-enters-agreement-purchase-voyager-digitals-assets/
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