The previous highest bidder for the company’s assets was the now-bankrupt FTX US, who made a $1.4 billion offer.
The assets of the bankrupt cryptocurrency lender Voyager Digital will be purchased by cryptocurrency exchange Binance.US for $1.022 billion, according to a recent press release issued on December 19. The company said that Binance.US represented the “highest and best bid for its assets” after considering its tactical choices.
The fair market value of Voyager’s cryptocurrency holdings at a future date that has not yet been determined, plus an additional consideration worth $20 million in additive value, make up the $1.022-billion bid.
“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 expected to be finalized by April 18, 2023. In fiduciary duty, Binance has committed to depositing $10 million and, up to a maximum of $15 million, covering some of Voyager’s costs. The presiding bankruptcy court will hold a hearing on January 5, 2023, to approve the purchase agreement. The sale is additionally contingent upon a creditor’s approval and other usual closing requirements.
In July, Voyager halted withdrawals and declared bankruptcy due to liquidity problems brought on by its exposure to a $650 million loan default from the now-defunct hedge fund Three Arrows Capital. The collapsed cryptocurrency exchange FTX US had submitted a $1.4 billion bid for the Voyager assets in October. The previous agreement allowed for the full payment of senior claims and the recovery of about 72% of the account value for unsecured creditors.