Binance.US has relaunched interest in acquiring the insolvent crypto lender Voyager Digital and is preparing to bid for the bankrupt lending platform.
- Binance.US, an annex of the world's largest crypto exchange, makes a bid to acquire Voyager, a crypto lending firm.
- Voyager reopened the auction process as FTX.US— the former bid winner—became insolvent and declared bankruptcy.
- Following the report, Voyager's native token, VGX climbed over 57% to $0.45 in the past 24 hours.
FTX Chaos Causes Binance To Relaunch Bid
The move by Binance.US, the operating annex of the world's largest cryptocurrency exchange, to acquire Voyager started again after Voyager reopened the auction process as FTX.US— the former bid winner—became insolvent and declared bankruptcy.
Previously, in Sept. 2022, FTX was the protagonist after winning the bid against rival Wave Financial to buy Voyager Digital for $1.42 billion.
Now FTX and Voyager are in the same boat. Both firms have filed for Chapter 11 bankruptcy, unable to process withdrawals in real-time for users who demanded.
Binance's Approach Towards A Recovery Fund
Binance CEO Changpeng Zhao also known as “CZ'' had hinted at the recovery fund with the intent of rescuing crypto firms suffering from liquidity crisis and reducing the “cascading negative effects of FTX.” This might be Binance’s first run as a market savior. Following the report of Binance's Interest, Voyager's native token, VGX climbed over 57% to $0.45 in the past 24 hours.
Although Binance had an eye for its first bankrupt auction bid in Sept. 2022, it halted the acquisition after the U.S. Government identified the foreign takeover as a national security concern. However, there isn't a clear indication of what has changed.
In related news, Binance temporarily suspended deposits on Solana of USDC and USDT stablecoins until further notice.
The Bottom Line
Voyager, which has 100,000 clients and $10 billion worth of assets and liabilities, declared bankruptcy in July 2022 following the collapse of Three Arrows Capital (3AC), an active borrower placing a risky bet on Terra Luna’s stablecoin. Since then, it’s been a long winter for the crypto industry. To add insult to injury, many crypto lenders exposed to the recent FTX crisis including BlockFi and Genesis, have declared bankruptcy.