Voyager Digital Acquisition by Binance.US
- The U.S. federal government has approved the bid by Binance’s American branch to buy up the remaining assets of the bankrupt crypto lender Voyager Digital.
- Binance.US originally made the move to buy up the remaining assets of Voyager Digital after FTX’s bid for the same fell through went the exchange collapsed in November last year.
- Voyager Digital filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July last year, saying at the time that it seeks to implement a reorganization plan and “maximize value for all stakeholders.”
Government Approval
The U.S. federal government has approved a $1 billion acquisition deal between Binance’s US branch and bankrupt crypto lender Voyager Digital. The approval came after a joint stipulation was filed with district court on April 19th, which now awaits approval from Judge before proceeding further.
Binance’s Offer
Binance’s US branch proposed an offer that values Voyager at $1 billion, but requires only about $20 million in cash payment along with repayments to customers as part of its agreement with Voyager. This follows after FTX’s offer for similar assets fell through when it collapsed back in November 2020.
Background Information
Binance is one of world’s largest cryptocurrency exchanges led by billionaire Changpeng Zhao (CZ). Although being tightly associated with its parent company, Binance US insists that it is fully compliant with all US security regulations and operates independent from its international entity. Last month, CZ and Binance were sued by Commodity Futures Trading Commission (CFTC) alleging that they have provided unregistered crypto-derivative products to traders based in USA despite knowing it violated laws and regulations – which both parties deny any wrongdoing against them.
