Voyager Crypto Brokerage to Sell Assets to Binance.US for $1 Billion

The cryptocurrency brokerage company Voyager Digital Ltd said on Monday that it will sell its assets to Binance.US in a deal valued at about $1 billion after review.

Binance.US, headquartered in Palo Alto, California, which operates as a separate legal entity and has a license agreement with Binance.com, will make a deposit of $10 million and reimburse Voyager for certain expenses up to $15 million .

Nearly $2 trillion in value has been drained from the cryptocurrency sector this year due to rising interest rates and heightening fears of an economic downturn. The crash has eliminated key players in the sector such as Three Arrows Capital y Celsius Network.

However, the biggest blow came after FTX, the largest cryptocurrency exchange, filed for bankruptcy last month. Its rapid decline has also triggered harsh scrutiny from regulators over how major exchanges hold user funds.

In September, Voyager Digital said FTX won an auction for its assets, in an offer valued at about $1.42 billion, after Voyager filed for Chapter 11 bankruptcy protection in July.

Voyager said Monday that it will seek Bankruptcy Court approval for the Binance.US settlement at a hearing on January 5, 2023.

FTX filed for bankruptcy last month and Sam Bankman-Fried resigned as its chief executive after traders withdrew billions from the platform in three days and rival exchange Binance abandoned a bailout deal.

The bankruptcy has fueled fears about the future of the cryptocurrency sector, after FTX outlined a “serious liquidity crisis.”