Insolvent Crypto Company Voyager Assets Will Be Acquired by Binance.US for $1 Billion

In a recently revealed and unexpected arrangement, Binance.US, the American subsidiary of the global cryptocurrency exchange Binance, would acquire the remaining funds of the now-defunct crypto lender Voyager Digital.

According to Reuters, the contract between the two businesses values Voyager at approximately $1 billion and stipulates that Binance.US will deposit $10 million and reimburse Voyager for some costs up to $15 million.

The sales price consists of $20 million in total, plus payments to Voyager's clients.

The agreement would effectively allow Binance.US to pay $20 million for the opportunity to purchase 3.5 million customer records from Voyager, according to a Forbes piece that was also released on Monday. After the acquisition, it will be up to Binance.US to do all it can to maintain the users and their funds on the site.

In all other words, the $1 billion assessment for Voyager is not the sum paid by Binance.US, but rather a sum mostly derived from the obligations of Voyager to its customers.

Voyager has stated that in order to move through with the right opportunity with Binance.US, it would ask the Bankruptcy Court for permission. On January 5, 2023, there is a hearing set where this is anticipated to occur.

Unidentified sources told Forbes that Binance.US will get the money in March of the following year.

Along with the initial media reports, CEO of Binance.US Brian Shroder made direct comments regarding the deal.

Once the agreement closes, Voyager members will be able to retrieve their cryptocurrency straight through Binance.US's site according to a tweet from Shroder.

Shroder continued in a subsequent tweet:

“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. Our goal is simple: return users their cryptocurrency on the fastest timeline possible,”

Given the ongoing uncertainties in the crypto market at the present, the revelation of Binance.US' takeover attempt of Voyager surprised the cryptocurrency world. This has specifically impacted Binance's international cryptocurrency exchange, which has witnessed customer transfers totaling billions of dollars.

In light of this, Changpeng Zhao (CZ), the CEO of Binance, has stated in Television interviews that his business is in a “solid financial position” and that no amount of client transfers can endanger the exchange because all merchant accounts are “held one-to-one.”

Binance and Binance.US may fare better now that the public has been made aware of Voyager's buyout, potentially assisting in the market's return to some degree of order.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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