As part of the agreement, Binance.US will make a $10m deposit and reimburse Voyager Digital for certain expenses up to a maximum of $15m
Voyager Digital to divest its assets to Binance.US. (Credit: Reto Scheiwiller from Pixabay)
Cryptocurrency firm Voyager Digital has agreed to divest its assets to US-based cryptocurrency exchange BAM Trading Services (operating as Binance.US) in a deal valued at $1.022bn.
The transaction will also involve an additional consideration equal to $20m of incremental value.
California-based Binance.US is an independent legal entity that has a licensing agreement with Binance, a cryptocurrency exchange.
As part of the agreement, Binance.US will make a $10m deposit and reimburse Voyager Digital for some expenses up to a maximum of $15m.
The agreement permits Voyager Digital to start returning value to customers immediately if the transaction does not close by 18 April 2023, subject to a one-month extension.
Voyager Digital is expected to seek Bankruptcy Court approval to execute the asset purchase agreement between the parties at a hearing on 5 January 2023.
The sale agreement with Binance.US will be finalised pursuant to a Chapter 11 plan.
The Binance.US offer is expected to free up the Voyager Digital customers’ funds previously locked up in their Voyager Digital accounts and return in the form of cryptocurrencies.
With the closing of a $200m seed round at a valuation of $4.5bn in April 2022, Binance.US is said to be well capitalised that all of its assets exceed the liabilities.
Binance.US president and CEO Brian Shroder said: “Our bid is a reflection of our guiding principle that customers should come first. Our goal is simple: return users their cryptocurrencies on the fastest timeline possible.
“We hope our selection brings to an end a painful bankruptcy process which saw customers unfairly dragged into it at no fault of their own. Upon close of the deal, users will be able to seamlessly access their digital assets on the Binance.US platform where they will continue to receive future disbursements from the Voyager estate.”