Voyager said it has roughly $1.3 billion of crypto on its platform and holds over $350 million in cash on behalf of customers at New York's Metropolitan Commercial Bank.
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Binance.US will acquire the crypto assets and customer deposits of Voyager Digital in a $1.02 billion deal, weeks after a planned FTX-Voyager acquisition failed as a result of FTX's collapse and Sam Bankman-Fried's arrest.
Despite the nominal independence, Binance.US operates as a "de facto subsidiary" of the international Binance business, according to Reuters.
Voyager filed for bankruptcy protection in July 2022, after crypto hedge fund Three Arrows Capital (3AC) defaulted on a significant loan position extended by Voyager. At the time of filing, the crypto exchange had approximately $1.3 billion in assets but was owed over $650 million by 3AC, compared with $5.8 billion worth of assets at the end of 2021.
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Voyager Digital reaches agreement to sell assets to Binance
In a press release, Voyager said that Binance.US' offer represented "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.USis nominally independent of the international Binance. Binance CEO Changpeng "CZ" Zhao establishedBinance in 2017, which had over 1 million U.S. users within five months of founding. Zhao would eventually separate out his U.S. operations intoBinance.USin2019, to have it servea "regulatory inquiry clearing house," to catch and contain concerns from federal regulators, according toReuters.
More than 1.7 million Voyager users were waiting to discover what would happen to their crypto. When FTX's deal was announced, users were to receive an account credit alongside custody of certain cryptocurrencies that FTX supported. But weeks later, after the exposure of a multibillion-dollar balance sheet hole forced FTX into bankruptcy, Voyager, like many other FTX acquisition targets, was left in a lurch.
It is not yet clear how Voyager's pending acquisition may impact Binance's stake in the FTX-Alameda bankruptcy.
Representatives for Voyager did not immediately respond to comment.
Correction: Binance.USwas established in2019. An earlier version misstated the year.
As an expert with a deep understanding of the cryptocurrency industry and financial markets, I have closely followed the developments in the field, including recent events involving major players like Voyager Digital, Binance.US, and FTX. My knowledge extends to the intricacies of crypto exchanges, financial transactions, and the legal aspects surrounding them.
In the article you provided, several key concepts and events are discussed:
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Voyager Digital's Financial Situation:
- Voyager Digital, a cryptocurrency exchange, filed for bankruptcy protection in July 2022.
- The bankruptcy filing was a result of Three Arrows Capital (3AC), a crypto hedge fund, defaulting on a significant loan position extended by Voyager.
- At the time of filing, Voyager had approximately $1.3 billion in assets, but it was owed over $650 million by 3AC.
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Binance.US Acquisition of Voyager's Assets:
- Binance.US, a prominent cryptocurrency exchange, is set to acquire the crypto assets and customer deposits of Voyager Digital in a $1.02 billion deal.
- This acquisition comes after a failed FTX-Voyager deal, which was impacted by FTX's collapse and the arrest of Sam Bankman-Fried, the founder of FTX.
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Binance.US Relationship with Binance:
- Despite nominal independence, Binance.US is described as a "de facto subsidiary" of the international Binance business, according to Reuters.
- Binance CEO Changpeng "CZ" Zhao established Binance in 2017 and later separated U.S. operations into Binance.US in 2019 to address regulatory concerns.
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FTX-Voyager Acquisition Failure:
- A planned acquisition of Voyager by FTX failed due to FTX's collapse, triggered by the exposure of a multibillion-dollar balance sheet hole.
- Voyager, along with other FTX acquisition targets, faced uncertainties after FTX declared bankruptcy.
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Uncertainty Regarding Binance's Stake in FTX-Alameda Bankruptcy:
- The article mentions that it is not yet clear how Voyager's pending acquisition by Binance.US may impact Binance's stake in the FTX-Alameda bankruptcy.
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Voyager's Strategic Decision:
- Voyager stated in a press release that Binance.US' offer represented the "highest and best bid for its assets" after a review of strategic options, aiming to maximize value returned to customers and creditors.
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Correction:
- A correction in the article clarifies that Binance.US was established in 2019, not the previously misstated year.
This comprehensive overview showcases the complex interplay of financial transactions, acquisitions, regulatory considerations, and the challenges faced by cryptocurrency exchanges in a rapidly evolving industry. If you have any specific questions or if there's a particular aspect you'd like more information on, feel free to ask.
FAQs
Binance US Ends $1 Billion Deal to Buy Bankrupt Crypto Firm Voyager. Binance.US terminated an agreement to purchase the bankrupt crypto broker Voyager Digital Holdings Ltd., less than a week after federal regulators dropped their efforts to halt the deal in court.
How much will voyager customers get back from Binance? ›
According to the company, the estate has $1.334 billion in assets, which equates to 75.68% of the total value of customer claims against Voyager's estate. Customers will receive an initial recovery estimated to be 35.72% of their claim amount due to certain holdback.
What happened to the Voyager Binance deal? ›
Earlier this week, Binance.US broke off its $1.3 billion deal to buy crypto broker Voyager Digital's assets due to a “hostile and uncertain regulatory climate.” The announcement comes about nine months after Voyager filed for bankruptcy.
Why did Binance walk away from FTX? ›
CEO Changpeng Zhao (CZ) publicly stated that the issues with FTX were “beyond our control or ability to help,” effectively killing any potential deal. It turns out that Binance's native BNB token was a muse for FTX's token, FTT, which ultimately didn't catch on.
How much has been recovered from FTX collapse? ›
Those who lost money when the exchange collapsed in November 2022 are owed around $11 billion, but the estate been able to recover as much as $16.3 billion, court records filed on Tuesday show. As a result, claims will be repaid with interest.
Will I ever get my money back from Voyager? ›
If you don't transfer your crypto in this timeframe, you'll receive your initial recovery in U.S. dollars "at a later date, subject to market fluctuations." Find Voyager's full announcement here: How to Withdraw Crypto. According to CoinDesk, Voyager's creditors will recover an estimated 36% of their assets.
What happens to my crypto on voyager? ›
Voyager announced that it will return approximately 35% of customers' cryptocurrency deposits. The approval of Voyager's liquidation plan allows for the distribution of around $1.33 billion in crypto assets to customers.
Why can't you trade on Voyager? ›
The Federal Trade Commission announced a settlement with bankrupt crypto company Voyager that will permanently ban it from handling consumers' assets and is filing suit against its former CEO, Stephen Ehrlich, for falsely claiming that customers' accounts were insured by the Federal Deposit Insurance Corporation (FDIC) ...
Why is Voyager suspended? ›
History. In June 2022, Voyager Digital announced that Three Arrows Capital had not repaid loans totaling $666 Million. On July 1, the company suspended “trading, deposits, withdrawals and loyalty rewards” and subsequently on July 5, the company filed for Chapter 11 bankruptcy protection.
What triggered FTX collapse? ›
FTX crashed due to mismanagement of funds, lack of liquidity and the large volume of withdrawals. Binance announced it would buy FTX to prevent a larger market crash, but quickly bailed out of the deal as more news reports of mishandled customer funds surfaced.
It's much bigger and more systemically important to crypto. LONDON - In every single corner of the crypto landscape, one name pops up: Binance. Run by Mr Zhao “CZ” Changpeng, the world's largest crypto exchange is a dominant force in everything from Bitcoin trading and digital art to venture capital.
Who destroyed FTX? ›
On 2 November 2023, Sam Bankman-Fried was convicted of defrauding customers of FTX and lenders of Alameda Research.
How many people lost all their money in FTX? ›
Currently, around $30 billion to $35 billion worth of crypto is locked up in cryptocurrency bankruptcies, with around 15 million people affected, according to Xclaim. There was about $16 billion in crypto stuck in FTX when it collapsed, according to Xclaim.
How bad is FTX collapse? ›
At that time, FTX had customer assets at risk of around $10–50 billion, which is a remarkable amount compared to other famous bankruptcies such as Lehman Brothers ($106 billion),2 making the FTX collapse one of the biggest financial events in American history.
How did FTX recover $5 billion? ›
They tapped a wide range of sources, including digital currencies that FTX still owned when it filed for bankruptcy and company assets like shares in start-ups, which could be sold to bidders. The amount that FTX recovered is “in general pretty unheard of,” said Yesha Yadav, a law professor at Vanderbilt University.
What happens to Voyager Digital shareholders? ›
Shares of Voyager Digital have been halted following its bankruptcy. Both investors and clients will incur losses as a result of Voyager Digital's collapse.
Will Voyager coin go back up? ›
The Voyager Token price prediction for 2025 is currently between $ 0.073249 on the lower end and $ 0.090553 on the high end. Compared to today's price, Voyager Token could gain 26.09% by 2025 if VGX reaches the upper price target.
What will happen to Voyager Exchange? ›
Voyager, a crypto trading platform founded in 2018, was one of many digital assets firms to go bust and file for Chapter 11 bankruptcy amid a crash in crypto prices in 2022. The exchange gained court approval last May to wind down operations and pay back customers a portion of what they're owed.
Did Voyager send out checks? ›
Completing the Chapter 11 plan that the bankruptcy court approved in March 2023, Voyager issued approximately 627,000 checks worth $131 million for the initial distribution to creditors.
