Crypto firm Voyager to sell assets to Binance unit in US$1b deal
CRYPTO firm Voyager Digital said on Monday (Dec 19) that it will sell its assets to Binance’s US affiliate, in a deal valued at about US$1 billion, following a review.
Based in California, Binance.US operates as an independent legal entity and has a licensing agreement with Binance. It will make a US$10 million deposit for the purchase, and reimburse Voyager for certain expenses up to US$15 million.
Voyager filed for Chapter 11 bankruptcy protection in July. In September, it said that crypto exchange FTX had won an auction for its assets, in a bid valued at about US$1.42 billion. FTX filed for bankruptcy protection in November.
Voyager said it will seek court approval for the Binance deal at a hearing on Jan 5, 2023.
Nearly US$2 trillion in value was wiped out from the crypto sector this year, on rising interest rates and worries of an economic downturn. The slump eliminated key industry players such as Three Arrows Capital and Celsius Network.
FTX’s swift fall was a bigger blow, and sparked tough regulatory scrutiny of how major exchanges hold user funds. Its chief executive Sam Bankman-Fried stepped down, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.
SEE ALSO
The collapse fanned fears about the future of the crypto industry, after FTX outlined a “severe liquidity crisis”. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
