Crypto company Voyager Digital Ltd announced Monday that it would sell its assets and business to Binance.US. The deal is estimated at $1 billion.
Binance.US is a California company based in Palo Alto. They will deposit $10 million and then reimburse Voyager up to $15,000,000 for expenses. Voyager will pay $20 million for the purchase and make repayments to customers. The $1 billion value of Voyager is mainly made up of client debt.
Due to rising interest rates, and the escalating fears of an economic recession, nearly $2 trillion worth of crypto industry value was lost this year. Three Arrows Capital, Celsius Network and other key players in the industry have been eliminated by this slump.
The bigger hit came when FTX, a larger cryptocurrency exchange filed for bankruptcy protection. The rapid fall of FTX has prompted strict regulatory oversight into how large exchanges manage user funds.
Voyager Digital announced that FTX was the winner of an auction to sell its assets in September. This bid came after Voyager had filed for Chapter 11 bankruptcy protection.
Voyager stated Monday that it would seek approval from the Bankruptcy Court for its deal with Binance.US during a hearing Jan. 5, 2023.
FTX declared bankruptcy on October 1st. Bankman-Fried was appointed chief executive after the platform’s traders took billions of dollars from it in just three days. Binance, a rival to FTX, abandoned a rescue agreement.
Fears about the future have been heightened by the collapse of crypto after FTX warned that there would be a severe liquidity crisis.