According to a press release, Binance US is set to acquire Voyager Digital crypto assets for $1 billion, which has resulted in BNB, which had fallen as low as $220 early on Saturday amid escalating FUD, recovering nearly all of the losses brought on by the most recent outflow fears.
Moments ago, Binance, the largest cryptocurrency exchange in the world, announced that its US subsidiary (BAM Trading Services, aka Binance US), would purchase the asset of insolvent crypto lender Voyager Digital for $1 billion. This announcement appears to be an aggressive attempt by Binance to dispel rumours that it is experiencing a liquidity shortage amid a surge in outflows that sent its native token plunging to the lowest level since June. It is still unknown whether this is the much anticipated infusion of fresh capital that drives the crypto market to new lows or if CZ is merely attempting to pull an SBF and transfer money between two organisations.
The Binance.US bid, which is made up of (i) the fair market value of Voyager’s cryptocurrency portfolio at a future date to be determined, which at current market prices is estimated to be $1.002 billion, plus (ii) additional consideration equal to $20 million of incremental value, “sets a clear path forward for Voyager customer funds to be unlocked as soon as possible,” according to the press release.
Binance is essentially just buying Voyager’s cryptocurrency holdings and adding $20 million as tip value.
The announcement also stated that the bankruptcy estate still has the Company’s claims against Three Arrows Capital, and that any future money recovered from these and other unreleased claims will be given to the estate’s creditors.
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The press release is provided here:
Voyager Digital Ltd. (“Voyager” or the “Company”) (OTC Pink VYGVQ; FRA: UCD2) announced today that its operating company Voyager Digital LLC selected U.S. exchange BAM Trading Services Inc. (doing business as “Binance.US”) as the highest and best bid for its assets after a review of strategic options with the core objective of maximizing the value returned to customers and other creditors on an expedited timeframe.
Binance.US is headquartered in Palo Alto, CA, and is incorporated in Delaware. It is an independent legal entity and has a licensing agreement with Binance.com.
The Binance.US bid, which sets a clear path forward for Voyager customer funds to be unlocked as soon as possible, is valued at approximately $1.022 billion and is comprised of (i) the fair market value of Voyager’s cryptocurrency portfolio at a to-be-determined date in the future, which at current market prices is estimated to be $1.002 billion, plus (ii) additional consideration equal to $20 million of incremental value. The Company’s claims against Three Arrows Capital remain with the bankruptcy estate, and any future recovery on these and other non-released claims will be distributed to the estate’s creditors.
The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities.
Binance.US will make a $10 million good faith deposit and will reimburse Voyager for certain expenses up to a maximum of $15 million. Should the deal not close by April 18, 2023 subject to a one-month extension, the agreement allows Voyager to immediately move to return value to customers.
Voyager Digital LLC will seek Bankruptcy Court approval to enter into the asset purchase agreement between Voyager Digital LLC and Binance.US at a hearing on January 5, 2023. The sale to Binance.US will be consummated pursuant to a Chapter 11 plan, which will be subject to a creditor vote and is subject to other customary closing conditions. Binance.US and the Company will work to close the transaction promptly following approval of the chapter 11 plan by the Bankruptcy Court.
This sale agreement follows Voyager’s July 5, 2022 entrance into a voluntary restructuring process aimed at returning maximum value to customers. Additional information about the timeline and customer access to crypto will be shared as it becomes available. A copy of the asset purchase agreement and other pleadings filed in this case may be obtained free of charge by visiting the Voyager case website https://cases.stretto.com/Voyager.
Voyager was advised by Kirkland & Ellis LLP, Moelis & Company LLC, and Berkeley Research Group. Binance.US was advised by Latham & Watkins LLP.
Following the news, BNB, which had fallen as low as $220 early on Saturday amid escalating FUD, recovered nearly all of the losses brought on by the most recent outflow fears.