Voyager-Binance Deal: Customers To Recover 51% Of Pre-Bankruptcy Crypto Assets

Voyager Digital receives approval from a bankruptcy court to sell its assets to Binance.US for $1.02 billion.
By Varinder Singh
Updated 2 days ago
Voyager-Binance Deal: Customers To Recover 51% Pre-Bankruptcy Crypto Assets

Beleaguered crypto lender Voyager Digital received initial court approval to sell its assets to crypto exchange Binance.US for $1.02 billion. If the sale is approved by creditors, customers will recover 51% of crypto assets held before the bankruptcy filing. Moreover, the national security review of the deal is likely to be completed soon.

Advertisement
Advertisement

Voyager Digital Receives Court Approval

Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York approved the asset purchase agreement deal between Voyager and Binance.US, reported Reuters on January 11.

However, the deal is not final until the creditors approve the sale and a final court hearing in the future. Meanwhile, Voyager seeks to expedite the national security review of the deal that could decide whether the deal can actually proceed.

During Tuesday’s court hearing, Voyager attorney Joshua Sussberg noted that Voyager is actively responding to national security concerns raised by the U.S. Committee on Foreign Investment in the United States (CFIUS). Voyager will address any issues that would lead CFIUS to oppose the deal with Binance.US, said Sussberg.

“We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along.”

As part of the deal, Voyager will receive a $20 million cash payment and transfer customers to Binance.US’s crypto exchange. Thus, it will allow customers to withdraw their crypto assets from the platform for the first time after bankruptcy.

Voyager estimates that the deal with Binance.US will allow customers to recover 51% of their deposits at the time of Voyager’s bankruptcy filing. However, if CFIUS blocks the deal, customers will receive less payout.

Meanwhile, the Voyager Official Committee of Unsecured Creditors took to Twitter to approve the deal, noting greater recoveries for creditors than a self-liquidation.

Advertisement
Advertisement

Voyager Failed Deal With FTX

In October last year, Voyager received court approval to sell its assets to FTX for $1.42 billion. The deal would have enabled customers to recover 72% crypto assets they held before the bankruptcy filing. However, the deal was canceled due to the collapse of FTX.

The recent deal with Binance.US is less profitable for Voyager and its customers, but it could be the only best option for them currently.

Also Read: DCG Lashes Out At Cameron Winklevoss, Claims No Relationship with 3AC

Advertisement
Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.