Forbes: Binance US is Not Buying Voyager Assets for $1B

The Forbes report contrasts with circulating news implying that the exchange is looking to purchase the bankrupt firm’s assets for $1.02B.

A recent Forbes report clarified the deal between Binance.US – the United States-based partner of Binance – and embattled cryptocurrency brokerage firm Voyager relating to the latter’s bankruptcy proceedings. According to the article, Binance does not plan to purchase Voyager’s assets for $1.02B, as numerous reports suggest. The news had triggered a rally from Voyager’s native token, VGX, surging by 40% before hitting a roadblock.

Binance.US will be paying $20M to move Voyager’s assets, Forbes revealed. Notwithstanding, the remaining amount reported estimates what Voyager says its assets are currently worth. This worth will be adjusted in the future.

Essentially, Binance.US will send $20M to procure rights to the 3.5 million customer accounts domiciled on the Voyager platform. The funds will then be distributed to Voyager’s clients as a part of the bankruptcy proceedings. The bankruptcy court will determine the distribution of the funds to each account. Binance.US will then decide whether or not it wishes to retain the funds and accounts on the platform.

Afterward, Voyager and Binance.US will then engage in an agreement to purchase the crypto lender’s assets once the bankruptcy court approval is secured, which Voyager will seek in a court hearing on January 5, next year. The purchase of the assets will be subjected to a vote from Voyager’s creditors, as is customary with chapter 11 bankruptcy proceedings. Binance.US will receive the funds in March, the report notes.

The Forbes article likened the current deal to a previous agreement between Voyager and FTX.US in late September. FTX.US had won a bid to pay $51M to move Voyager’s assets valued at $1.4B. FTX.US’s offer of $51M had been increased from an original amount of $15M and trumped Binance’s $50M offer. The deal broke apart following FTX’s collapse.

Binance.US is Looking to Expand its Reach

Having begun trading operations in September of 2019, Binance.US has continued to employ measures to attract customers, as competition with America’s largest exchange Coinbase remains fierce. On December 7, Binance.US announced zero-fee trading for selected ETH pairs.

The acquisition of Voyager’s assets is yet another move towards obtaining more customers as it looks to expand its reach. After launching its staking feature in June, Binance.US introduced the Pay functionality last week.