- Binance.US won the bid to purchase Voyager for just over $1 billion.
- Voyager is one of many crypto companies that have gone bankrupt since May 2022.
- FTX had also placed a bid before filing bankruptcy.
Approval Hearing on January 5
The Bankruptcy Court will be asked to approve the asset purchase agreement with Binance.US at a hearing on January 5, 2023. Upon approval of the Chapter 11 plan by the Bankruptcy Court, Binance.US and the company will work to close the transaction as soon as possible, the companies said.
“We hope our selection brings to an end a painful bankruptcy process which saw customers unfairly dragged into it at no fault of their own, said Brian Schroder, president and CEO of Binance.US, "Our goal is simple: return users their cryptocurrency on the fastest timeline possible''.
FTX Had Also Placed A Bid
Voyager filed for bankruptcy in July, citing its exposure to Three Arrows Capital (3AC) and joining a growing list of crypto firms that have filed for bankruptcy this year. This wave of bankruptcies was sparked by the breakdown of the crypto project Terra and its algorithmic stablecoin UST in May.
FTX, once among the biggest crypto firms, filed last month for bankruptcy protection amid allegations of fraud. Before its collapse, it had also bid for Voyager. A similar announcement was made by Voyager in September identifying FTX.US's bid as "the highest and best bid."
The Bottom Line
Amidst the wave of fallen exchanges, Binance has emerged as a savior. In its bankruptcy filing, Voyager identified over 100,000 creditors. Binance.US' bid has brought creditors one step closer to receiving some of their money back.
"Binance.US is well capitalized: our assets exceed our liabilities," said Schroder. "All of our customers could withdraw their assets tomorrow, which is their right & we would still have hundreds of millions of current assets.''