Insolvent crypto broker to sell assets to Binance US for $1b

Crypto broker Voyager Digital announced that it has sold off its assets to Binance US in a deal “approximately valued at US$1.022 billion.”

The bid was the “highest and best” that Voyager received.

Based in the US, the now-bankrupt Voyager was set to be sold to FTX for US$1.42 billion. However, the latter’s recent collapse dissolved that deal.

Brian Shroder, CEO and president at Binance US / Photo credit: Binance US

According to a statement from Voyager, the bid covers its cryptocurrency portfolio’s “fair market value,” which is approximately US$1.002 billion at current market prices. The remaining US$20 million comes as an “additional consideration.”

Binance US will also make a good faith deposit of US$10 million and reimburse Voyager for expenses below a US$15 million limit.

The companies have until April 18, 2023 to close the sale. Prior to that, Voyager will have a hearing on January 5 to seek the bankruptcy court’s approval for the deal.

“Rather than having their assets liquidated for cash, our bid permits users to retain their cryptocurrencies and empowers them to make future decisions on what they want do with their assets,” tweeted Brian Shroder, CEO and president of Binance US.

In a statement, he added that Voyager users will gain access to their digital assets on the Binance US platform, where they can “continue to receive disbursements from the Voyager estate.”

Voyager was last recorded to have 100,000 creditors, with assets worth US$5 billion and liabilities amounting to US$4.9 billion. While it is currently repaying customers, the firm previously faced setbacks when its now-defunct loanee Three Arrows Capital failed to repay its loan – around US$653 million in total – in June 2022.

See also: Mission impossible: Recovering 3AC’s missing assets