Binance is preparing to buy crypto-lender Voyager

Key Takeaways:

• The American division of Binance is renewing its offer to acquire the insolvent lending platform Voyager Digital.

• The move comes after Voyager cancelled FTX’s acquisition offer after the company’s breakdown.

The American branch of the crypto exchange Binance has restarted its acquisition bid for the defunct lender Voyager Digital. The findings come after Voyager cancelled FTX‘s acquisition offer after the company’s implosion.

Nevertheless, Binance did not reply to Reuters’ request for comment right away. Voyager chose not to respond.

The now-defunct FTX emerged as the “white knight” in a prior auction that was finished around the end of last September, defeating competitors Wave Financial and Binance. National security issues at the time prevented Binance from purchasing the American Voyager.

The foremost offers to purchase the assets of Voyager had been made by Binance and FTX, according to a September Wall Street Journal report. Following that, FTX had won the assets of Voyager in an auction with a bid of $1.42 billion.

Voyagers, as a result of the Chapter 11 filing by @FTX_Official and FTX US we have reopened the bidding process and are in active discussions with alternative bidders.

For more information, please read our joint press release with @VoyagerUCC: https://t.co/drtQBEhl4S

— Voyager (@investvoyager) November 11, 2022

However, after FTX sought Chapter 11 bankruptcy protection last week, Voyager stated in a tweet on Wednesday that the company’s proposed sale would not proceed and that it is in constant dialogue with a number of alternative bidders.

In a press release last week, the Voyager Official Committee of Unsecured Creditors stated that it had not relocated any assets to FTX US, but did mention that a $5 million “good faith” deposit from FTX US was being held in an escrow account.

Voyagers, in light of recent events and reports regarding FTX US, the customer vote will be canceled and the proposed sale will not move forward. We are in active discussions with several alternative bidders.

We will keep you updated on reorganization efforts.

— Voyager (@investvoyager) November 16, 2022

Binance CEO Changpeng “CZ” Zhao also  stated earlier this week that his exchange is establishing an industry recovery fund to aid in the industry’s reconstruction. According to CZ, this is an initiative to aid sincere cryptocurrency companies experiencing liquidity problems in recovering and preventing further decline of the industry. Any project with problems should apply and get assistance. 

To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2

— CZ ???? Binance (@cz_binance) November 14, 2022

As per coindesk’s report, The fact that Voyager will be filing a claim against the FTX estate for contract infringement according to Thomas Braziel, managing partner at investment firm 507 Capital, will have  profound consequences.

Approximately a million customers as well as several investors were affected by the collapse of FTX, which had repercussions throughout the cryptocurrency community.