The defunct cryptocurrency lending company Voyager Digital made the announcement that it has chosen Binance.US as the highest and best bidder in a contract for $1.022 billion to buy the assets of the defunct company.
Following “a study of strategic alternatives with the fundamental purpose of maximizing the value delivered to consumers and other creditors on an accelerated timescale,” Voyager has decided to work with Binance.US. The release said that this decision was made.
At a hearing scheduled for January 5, 2023, Voyager Digital LLC will ask the bankruptcy court for permission to execute the asset acquisition agreement with Binance.US. This request will be made.
It is not yet known what the portfolio of cryptocurrencies owned by Voyager will be worth on an open market at a later time. However, taking into account the present state of the market, it is predicted that the valuation will come to a total of $1.002 billion, plus an extra consideration with a value of $20 million. The transaction was finalized when Binance.US reached an agreement to purchase the assets of Voyager for $1.022 billion.
The bankruptcy estate is still in possession of Voyager’s claims against Three Arrows Capital (3AC), and any future revenues from these claims and any other claims that have not been abated will be distributed to the creditors of the bankruptcy estate.
According to the information provided by Voyager Digital, “The Binance.US proposal intends to refund cryptocurrency to clients in kind, in compliance with court-approved disbursements and platform capabilities.”
The United States will provide a good faith deposit of ten million dollars and will pay Voyager up to fifteen million dollars in reimbursements for various costs. The proposition made by Binance.US gives forth a clear route for the expeditious release of cash belonging to Voyager clients.
The Chief Executive Officer and President of Binance.US, Brian Shroder, made the following statement: “We hope our selection puts to an end a difficult bankruptcy process that saw consumers wrongfully dragged into it at no fault of their own. Users will be able to access their digital assets on the Binance.US platform in a frictionless manner after the transaction is finalized, and they will continue to receive future payouts from the Voyager estate.
Voyager Digital startled the community in July by revealing that company had filed for Chapter 11 bankruptcy, causing it to collapse following its exposure to the failed cryptocurrency hedge fund Three Arrows Capital.
Compiled by Coinbold