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.

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.

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. 

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.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Newsletter

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!