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Voyager said it has around $1.3 billion in crypto on its platform and holds more than $350 million in cash on behalf of clients at Metropolitan Commercial Bank of New York.
Justin Sullivan | Getty Images
Binance.US will acquire crypto assets and customer deposits from Voyager Digital in a $1.02 billion deal, weeks after a planned acquisition of FTX-Voyager fell through following the collapse of FTX and the arrest of Sam Bankman-Fried.
Despite nominal independence, Binance.US operates as a “de facto subsidiary” of Binance’s international business, according to Reuters.
Voyager filed for bankruptcy protection in July 2022, after crypto hedge fund Three Arrows Capital (3AC) defaulted on a large loan position extended by Voyager. At the time of filing, the crypto exchange had approximately $1.3 billion in assets, but owed more than $650 million to 3AC, up from $5.8 billion in assets at the end of 2021.
In a press release, Voyager said Binance.US’ offer represents “the highest and best offer for its assets after a review of strategic options with the primary objective of maximizing value returned to clients and to other creditors within an expedited period”.
Binance.US is nominally independent from Binance International. Binance CEO Changpeng “CZ” Zhao established Binance in 2017, which had over 1 million US users within five months of its inception. Zhao would eventually spin off its US operations to Binance.US in 2019, to serve as a “regulatory investigation clearinghouse” to capture and contain concerns from federal regulators, according to Reuters.
More than 1.7 million Voyager users have been waiting to find out what will happen to their crypto. When the FTX deal was announced, users were to receive account credit alongside custody of certain FTX-supported cryptocurrencies. But weeks later, after the exposure of a multi-billion dollar balance sheet hole forced FTX into bankruptcy, Voyager, like many of FTX’s other acquisition targets, was left stranded.
The impact of the pending acquisition of Voyager on Binance’s stake in the FTX-Alameda bankruptcy is not yet clear.
Representatives for Voyager did not immediately respond to comments.
Fixed: Binance.US was created in 2019. An earlier version incorrectly listed the year.
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Sources 2/ https://news.google.com/__i/rss/rd/articles/CBMic2h0dHBzOi8vd3d3LmNuYmMuY29tLzIwMjIvMTIvMTkvYmluYW5jZS10by1hY3F1aXJlLXZveWFnZXItYXNzZXRzLXdlZWtzLWFmdGVyLWZ0eC1kZWFsLWZlbGwtdGhyb3VnaC1iYW5rcnVwdGN5Lmh0bWzSAXdodHRwczovL3d3dy5jbmJjLmNvbS9hbXAvMjAyMi8xMi8xOS9iaW5hbmNlLXRvLWFjcXVpcmUtdm95YWdlci1hc3NldHMtd2Vla3MtYWZ0ZXItZnR4LWRlYWwtZmVsbC10aHJvdWdoLWJhbmtydXB0Y3kuaHRtbA?oc=5 The mention sources can contact us to remove/changing this article |
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