The crypto lending firm Voyager Digital, on Monday, disclosed it had chosen Binance.US as the highest bidder to purchase its assets. The firm went bankrupt earlier this year and will sell off its assets worth above $1 billion to Binance.US.
This followed a review of strategic options to maximize the value returned to customers and involved creditors within a certain timeframe.
Voyager Digital’s cryptocurrency portfolio is currently valued at $1.002 billion, the fair market value and the bid price. Additionally, the purchase will include a consideration equivalent to $20 million of incremental value.
The sell-off is a gear in a positive direction that implies that Voyager’s customers’ funds would be unlocked in no time. Binance.US aims that customers to get back their crypto in kind following the court-approved disbursements and its capabilities, Voyager said.
Pending Voyager’s approval from the bankruptcy court at a January 5th hearing, Binance.US will make a $10 million deposit and a $15 million payment to Voyager for certain expenses.
Moreover, the announcement stated that “should the deal not close by April 18, 2023, subject to a one-month extension, the agreement allows Voyager to immediately move to return value to customers.”
Before Binance’s fresh bid, Voyager, at the time it went bankrupt, was in line to sell off its assets to FTX, the now-bankrupt exchange, and its CEO was charged with fraud. FTX had beaten other rivals in the Voyager bid, but Binance.US, in a recent development, won the bid as FTX itself became insolvent and declared abruptly.
The Voyager advisory board includes Kirkland & Ellis LLP, Moelis & Company LLC, and Berkeley Research Group. While Binance.US has Latham & Watkins LLP.
Additionally, information on the Voyager case file and asset purchase agreement can be obtained on the Voyager case website https://cases.stretto.com/Voyager.
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