As FTX filed for bankruptcy, Voyager Digital said that Binance.US had won a second round of bidding, opening the door for a potential settlement for the platform's 1.7 million users. In this article, you can expect to read about the Voyager bankrupt and more .
Did Voyager Bankrupt?
At the end of 2021, the corporation held crypto assets valued in the billions of dollars, but a general market decline and a string of unsuccessful bets, including those made to Three Arrows Capital and Alameda Research, reduced the firm's available money.
Why Did Voyager Go Bankrupt?
Weeks after a proposed FTX-Voyager transaction failed due to FTX's collapse and Sam Bankman-arrest, Fried's Binance US will purchase the cryptocurrency assets and customer deposits of Voyager Digital in a $1.02 billion deal.
Although it claims to be independent, Binance.US actually functions as a "de facto subsidiary" of the global Binance company.
After cryptocurrency hedge fund Three Arrows Capital (3AC) defaulted on a sizable loan position provided by Voyager, the company filed for bankruptcy protection in July 2022. In contrast to the $5.8 billion in assets it had at the end of 2021, the crypto exchange had about $1.3 billion in assets at the time of filing but was owed over $650 million by 3AC.
The offer from Binance.US, according to a news release from Voyager, was "the highest and best bid for its assets after a study of strategic options with the fundamental purpose of maximizing the value returned to customers and other creditors on an expedited timetable. "
Binance. The US is ostensibly independent of the global Binance. Binance was founded in 2017 by Changpeng "CZ" Zhao, the CEO of Binance, and within five months of its launch, it had over 1 million US users. Eventually, Zhao would separate his US activities into Binance.US in 2019, with the intention of using it as a "regulatory inquiry clearing house" to snare and contain objections from federal authorities.
The fate of their cryptocurrency was awaited by more than 1.7 million Voyager users. Users were promised account credit and custody of some of the cryptocurrencies that FTX supported when the arrangement with them was first announced. in a bind weeks later, when the discovery of a multibillion-dollar balance sheet hole led FTX into bankruptcy. So, this is how Voyager bankrupt.
Summary
It is unclear how the pending acquisition of Voyager will affect Binance's stake in the Voyager bankrupt. In July, Voyager filed for Chapter 11 bankruptcy protection, which seeks to rebuild troubled businesses as viable business operations, after crypto defa hed Arge fund on Capiree $670 million loan from the company.
