Binance.US Now Acquiring Bankrupt Exchange “Voyager”

Binance.US ($BUSB) token artwork Ⓒ 2023 – Crypto Coin Opps
Binance.US ($BUSB) token artwork Ⓒ 2023 – Crypto Coin Opps
Binance.US ($BUSB) token artwork Ⓒ 2023 – Crypto Coin Opps

Recently, the world’s largest cryptocurrency exchange’s US chapter took a major step in order to further expand its reach.

Changpeng Zhao’s American-based exchange, Binance.US, opted for acquiring the bankrupt company “Voyager”, for the price of $1.02 billion.

After filing for Chapter 11 bankruptcy in July, the future seemed grim for Voyager. The company faced a lot of turbulence throughout 2022, and eventually close down after the FTC scandal emerged.

FTX Contagion Hit Voyager

According to reports, Voyager directors found themselves in hot water after a series of investments with FTX sister companies Alameda Research and Three Arrows Capital went south.

Voyager had around $1.3 billion in assets at the time of the bankruptcy filing. However, a huge chunk of that money was linked to Three Arrows Capital ($650 million). a

In comparison, Voyager had nearly $6 billion in assets by 2021. That major loss in company assets ended up being the biggest proponent for Voyager’s downfall.

What’s interesting is that, in September, Voyager closed a $1.4 billion deal to sell its assets to Sam Bankman-Fried’s FTX.

At the time that was seen as the light at the end of the tunnel for the over 1.7 million Voyager users who didn’t know what would happen to their crypto.

However, shortly after, FTX also spiraled into inexistence after a major company-crises resulted in the bankruptcy of FTX, and the imprisonment of its CEO Sam Bankman-Fried.

Opposition to Binance Acquiring Voyager Deal

The Binance-Voyager deal was not well-welcomed by some. Mostly, by the also bankrupt company FTX, alongside Alameda Research and even United States Government regulators.

Uncertainties highlighted by the SEC, along with financial authorities from New York, Texas, and Vermont, and the Department of Justice’s bankruptcy division were raised about Binance.US’ actual financial capabilities of acquiring the company.

Meanwhile, Alameda stated that the deal breached creditors’ hierarchies, according to American bankruptcy laws. Alameda went to the point of calling the deal “evince hypocrisy and chutzpah at its finest”, in protest.

It is still unclear how the acquisition impacts Binance’s involvement in the FTX-Alameda bankruptcy, and if U.S. regulators will get involved. But as of right now, Binance is on its way to acquiring a former industry-leading company.

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