According to a new press statement issued on Dec. 19, cryptocurrency exchange Binance.US will pay $1.022 billion for the assets of bankrupt crypto lender Voyager Digital.
The $1.022-billion bid includes the fair market value of Voyager's cryptocurrency portfolio at a future date to be determined, as well as an extra consideration of $20 million in incremental value.
Following a study of strategic alternatives, the company stated that Binance.US represented the "highest and best bid for its assets."
"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 release stated. "The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities."
Prior to the major FTX collapse, FTX US secured a $1.4 billion deal for Voyager's assets. The previous agreement enabled senior claims to be paid out in full and allowed unsecured creditors to recover around 72% of the value of their accounts.
Voyager stated at the time that the FTX US proposal was based on the fair market value of its crypto holdings. It had said that its customers may eventually switch to the FTX platform when the exchange had obtained the winning bid.
However, during a court hearing, U.S. bankruptcy judge Michael Wiles stated that the tentative sale would not be finalized unless it received the consent of Voyager's creditors and he approved the bankruptcy payout plan, saying during the court hearing:
"If the plan falls apart, there's no part of this agreement that survives."
On Jan. 5, 2023, the presiding bankruptcy court will hold a hearing to decide whether to approve Binance's purchase deal. The sale is additionally contingent upon a creditor's approval and other usual closing requirements.
The transaction must be completed by Apr. 18, 2023. In good faith, Binance has agreed to deposit $10 million, and it will reimburse Voyager for some costs up to a maximum of $15 million.
Due to liquidity problems brought on by its exposure to a $650 million loan default from the now-defunct hedge fund Three Arrows Capital, Voyager halted withdrawals in July and filed for bankruptcy.
Having only learned of Voyager's decision to accept the bid on Dec. 8, the committee of unsecured creditors for Voyager stated on Twitter on Dec. 20 that it thought the Binance.US bid "appears to be the best transaction at this time," but added that it was "still evaluating" given the short amount of time available.
