Binance is still facing ongoing liquidity concerns as a result of the fall of FTX, but it is feeling confident enough to spend more than $1 billion buying out a former rival’s assets.
Key Details
- Crypto exchange Binance has announced that it will purchase the assets of Voyager Digital for $1.02 billion.
- The deal comes weeks after FTX attempted to purchase this bankrupt exchange prior to its collapse.
- Voyager announced in a Monday morning press release that Binance put in the highest bid for the exchange’s assets, and that it plans to return assets to customers and creditors using the purchase.
Why it’s News
The entire cryptocurrency economy is in a precarious position, with multiple crypto exchanges facing simultaneous fears of insolvency and instability. Binance is making a move to obtain assets from one of this year’s other major collapses.
Voyager filed for bankruptcy in July 2022 and went into voluntary restructuring to redirect assets toward its investors and customers. It will face an asset purchase meeting on January 5, 2023, with respect to Chapter 11 bankruptcy laws and approval from a Bankruptcy Court. The bankruptcy affected at least 1.7 million users who are waiting for some form of access to their crypto funds.
“When FTX’s deal was announced, users were to receive an account credit alongside custody of certain cryptocurrencies that FTX supported. But weeks later, after the exposure of a multibillion-dollar balance-sheet hole forced FTX into bankruptcy, Voyager, like many other FTX acquisition targets, was left in a lurch. It is not yet clear how Voyager’s pending acquisition may impact Binance’s stake in the FTX-Alameda bankruptcy,” says CNBC.
Binance has played a major role in the past month’s collapse of one of the largest cryptocurrency exchanges in the world, FTX. The company initially offered to purchase the exchange following a liquidity crisis but backed out of the purchase.
As we previously reported, Binance has since struggled with its own reported crises, as it attempts to cool investor concerns and publicly disclose its own finances enough to divert concerns of another liquidity crisis.
