Voyager Digital Ltd., the bankrupt crypto lender, said today that it entered into an agreement with Binance.US, the American arm of crypto exchange Binance Ltd., to acquire its assets in a deal that will clear a path to return customer funds.
The deal is valued at approximately $1.022 billion, which is based on the estimated fair market value of Voyager’s cryptocurrency portfolio at a to-be-determined date in the future, plus $20 million of incremental value.
“Our bid is a reflection of our guiding principle that customers should come first. Our goal is simple: return users their cryptocurrencies on the fastest timeline possible,” said Brian Shroder, chief executive and president of Binance.US.
CoinDesk previously reported that Binance was planning a bid for Voyager following the collapse and bankruptcy of cryptocurrency exchange FTX Trading Ltd. Bankman-Fried, chief executive of FTX, had been previously buying up distressed crypto assets and acting as a “white knight” for the crypto industry. As part of that activity, FTX originally won a bid for Voyager’s assets in September.
However, after filing for bankruptcy FTX could no longer make good on its side of the deal to acquire Voyager’s assets and they went up for auction again.
“The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities,” Binance said in a press statement.
As part of the deal, Binance will make a $10 million good faith deposit and will begin by reimbursing Voyager for certain expenses up to a maximum of $15 million.
The deal will require approval from bankruptcy court and there will be a hearing about the matter on January 5, 2023.
Voyager filed for bankruptcy in July amid crypto industry turmoil spurred by the collapse of the crypto hedge fund Three Arrows Capital. In the following months, multiple industry players would go bankrupt, including crypto lenders Celsius Network LLC and Holdnaut.