According to a press release issued on December 19, cryptocurrency exchange Binance.US will pay $1.022 billion for the assets of bankrupt crypto lender Voyager Digital. Following a review of strategic alternatives, the company stated that Binance.US represented the highest and best bid for its assets.
"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. According to court-approved disbursements and platform capabilities, the Binance.US bid aims to return crypto to customers in kind."
The transaction is scheduled to close on April 18, 2023. Binance has agreed to make a good faith deposit of $10 million and will reimburse Voyager for certain expenses up to a total of $15 million. On January 5, 2023, the presiding bankruptcy court will hold a hearing to approve the purchase agreement. Furthermore, the sale is subject to a creditor vote and other standard closing conditions.
In July, Voyager halted withdrawals and declared bankruptcy due to liquidity issues caused by a $650 million loan default from defunct hedge fund Three Arrows Capital. The previous agreement allowed senior claims to be paid in full and unsecured creditors to recover roughly 72% of the value of their accounts.
In a tweet on Dec. 20, Voyager's committee of unsecured creditors stated that the Binance.US bid appears to be the most favorable transaction at this time but that it was still evaluating given the short timeframe to evaluate the decision — having only learned of Voyager's intention to accept the bid on Dec. 8.
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