Binance.US has been selected as the highest bidder to buy certain assets of bankrupt crypto lender Voyager Digital for a consideration of $1bn, plus $20m of incremental value.
The current agreement follows Voyager’s filing for relief under Chapter 11 of the US Bankruptcy Code, after crypto hedge fund Three Arrows Capital defaulted on a $670m loan.
In September, Voyager agreed to be acquired by FTX US, the US business unit of FTX, for a total consideration of $1.4bn, after FTX won in a US bankruptcy auction.
Last month, FTX itself filed for bankruptcy and its chief executive Bankman-Fried stepped down, as traders pulled billions from the platform in three days.
Binance.US, an independent legal entity with licensing agreement with Binance.com, aims to return crypto to customers as per the court-approved disbursements.
The transaction consideration includes a $10m good faith deposit, up to $15m reimbursement to Voyager for certain expenses and additional consideration of up to $20m of incremental value.
The US-based crypto company will seek Bankruptcy Court approval to execute the asset purchase agreement with Binance.US, at a hearing scheduled for 5 January 2023.
The transaction will be closed according to a bankruptcy protection plan (Chapter 11), which is subject to a creditor vote and approval by the Bankruptcy Court.
If the transaction does not close before 18 April 2023, subject to a one-month extension, Voyager can immediately move to return value to customers, according to the agreement.
Voyager’s claims against Three Arrows Capital are currently with the bankruptcy estate, and any recovery on the claims in the future will be distributed to the estate’s creditors.
Kirkland & Ellis, Moelis & Company, and Berkeley Research Group advised Voyager on this transaction, while Latham & Watkins advised Binance.US.
