Binance.US has entered into a deal with insolvent crypto lender Voyager Digital to buy its assets.
The bid from the U.S. subsidiary of the largest cryptocurrency exchange “sets a clear path forward for Voyager customers’ funds to be unlocked as soon as possible and returned to them in the form of the cryptocurrencies they previously held in their Voyager accounts,” according to an official blog post.
Binance.US’s winning offer trumps that of industry competitors CrossTower, Wave Financial, and INX.
“Our proposal reflects our guiding concept that the client comes first.” “Brian Shroder, Chief Executive Officer and President of Binance.US, said, “Additionally, we’re excited to announce:
“Our objective is straightforward: to restore consumers’ cryptocurrency as quickly as feasible. We believe that our decision will put an end to a terrible bankruptcy process in which consumers were wrongfully dragged into it. Users will have seamless access to their digital assets on the Binance.US platform, where they will continue to receive future distributions from the Voyager estate until the transaction is finalized.
According to a press statement, Binance.US will provide a $10 million deposit of good faith. Additionally, it would refund Voyager up to $15 million for certain expenditures.
The news comes at a time when the blockchain and cryptocurrency industries are experiencing financial instability and heightened scrutiny of centralized exchanges. Shroder revealed through Twitter that “Coinbase. US is well capitalised: our assets outweigh our obligations,” elaborating, “All of our clients might withdraw their funds tomorrow, as is their right, and we would still have hundreds of millions of dollars in current assets.”
Voyager filed for Chapter 11 bankruptcy protection in July owing to its exposure of roughly $650 million to the defunct cryptocurrency hedge fund Three Arrows Capital. The sale to Binance.US is contingent on a vote by creditors and other closing conditions.
A bankruptcy court authorized Voyager’s plan to transfer its assets to FTX before the crypto exchange filed for Chapter 11 bankruptcy protection and its former CEO, Sam Bankman-Fried, was charged with criminal offences.
Michael McCaffrey, the former CEO and primary owner of The Block received a series of loans from Sam Bankman-Fried, the founder and former CEO of FTX and Alameda, beginning in 2021. In December 2022, McCaffrey resigned from the corporation for failing to report these transactions.
Also Read: Whales buy 573.4 billion SHIB as price rises slightly
