Source: Binance / Instagram

Binance

Binance US, the American subsidiary of the global crypto exchange Binance, will purchase the remaining assets of the now-bankrupt crypto lender Voyager Digital as part of a recently disclosed an unexpected arrangement.

According to Reuters, the agreement between the two businesses values Voyager at over $1 billion and stipulates that Binance.US would pay a $10 million deposit and reimburse Voyager for certain expenditures up to $15 million.

According to a Forbes report published on Monday, the agreement would basically allow Binance.US to pay $20 million for the opportunity to purchase 3.5 million user accounts from Voyager. Following the acquisition, it will be up to Binance.US to do everything possible to maintain consumers and assets on the platform.

In other words, the $1 billion valuation for Voyager is not based on the sum paid by Binance.US, but rather on Voyager's liabilities to its clients.

Voyager has said that it would seek Bankruptcy Court clearance to proceed with the proposed acquisition with Binance. US. This is likely to occur at a hearing on January 5, 2023.

According to unidentified sources contacted by Forbes, Binance.US is anticipated to receive the assets in March of next year.

The acquisition price totals $20 million, including refunds to Voyager customers.

Voyager users are to be transferred to Binance

In addition to early media reports, Binance directly remarked on the transaction. Brian Shroder is the US CEO.

Shroder stated on Twitter that Voyager members would be able to access their crypto straight from Binance.

Once the agreement is completed, the US will have a platform.

"We hope our selection comes to an end a difficult bankruptcy process which saw customers wrongfully dragged into it at no fault of their own. "Our objective is simple: restore consumers' bitcoin as soon as possible," Shroder wrote in a follow-up tweet.

Surprising announcement

Binance has made an announcement. Given the current state of the crypto market, the US takeover attempt for Voyager comes as a surprise to the crypto community. This has had a significant impact on Binance's worldwide crypto exchange, which has witnessed billions of dollars in client withdrawals in recent days.

Despite this, Binance CEO Changpeng Zhao (CZ) has repeatedly said on television that his business is in a "good financial situation." He has also stated that no client withdrawals may jeopardize the exchange since all customer deposits are "held one-to-one."

With the public announcement of Voyager's acquisition proposal, Binance, and Binance.

The US might come out stronger, perhaps restoring some market order.