According to a new press statement issued on Dec. 19, the US division of Binance will pay $1.022 billion for the assets of bankrupt crypto lender Voyager Digital.
Prior to the major FTX collapse, FTX US secured a $1.4 billion deal for Voyager’s assets. The previous agreement enabled senior claims to be paid out in full and allowed unsecured creditors to recover around 72% of the value of their accounts.
Binance US arm becomes highest bidder for Voyager Digital assets
The $1.022-billion bid includes the fair market value of Voyager’s cryptocurrency portfolio at a future date to be determined, as well as an extra consideration of $20 million in 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 release stated. “The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities.”
FTX bid fallout
Voyager stated previously that the FTX US proposal was based on the fair market value of its crypto holdings. It had said that its customers may eventually switch to the FTX platform when the exchange had obtained the winning bid.
However, during a court hearing, US bankruptcy judge Michael Wiles stated that the tentative sale would not be finalized unless it received the consent of Voyager’s creditors and he approved the bankruptcy payout plan.
On Jan. 5, 2023, the presiding bankruptcy court will hold a hearing to decide whether to approve Binance’s purchase deal.
The transaction must be completed by Apr. 18, 2023.