Binance.US to bid for bankrupt crypto lender Voyager: CoinDesk

Quick Take

  • Binance.US is reportedly preparing to bid for bankrupt crypto lender Voyager.
  • Binance had previously lost a bid for Voyager to FTX.US in July. 

Binance.US — the American arm of the largest crypto exchange by volume, Binance — is preparing to bid for bankrupt lender Voyager Digital, CoinDesk reported Thursday, citing a person familiar with the plans.

Binance had previously made a $50 million bid for Voyager but lost it to FTX.US. But since FTX Group filed for bankruptcy protection last week, Voyager began another round of bidding for its assets.

Other bidders for Voyager included crypto investment manager Wave Financial and trading platform CrossTower. A CrossTower spokesperson told Axios earlier this week that the firm intends to submit a revised bid.

Voyager was founded in 2019 and went public that year via a reverse merger. It filed for bankruptcy protection in July due to its over $650 million exposure to the collapsed crypto hedge fund Three Arrows Capital.

It remains to be seen who emerges as a new winning bidder for Voyager. The firm hadn't transferred any assets to FTX.US in connection with the previously proposed transaction. FTX.US had submitted Voyager a $5 million "good faith" deposit as part of the auction process, which is held in escrow.

At the time of FTX Group's Chapter 11 filing, Voyager maintained a balance of around $3 million at FTX — substantially comprised of locked LUNA2 and locked SRM that it was unable to withdraw because they remain subject to vesting schedules, Voyager said earlier this week.

The firm, however, recalled loans from Alameda Research for 6,500 BTC and 50,000 ETH, and currently has no loans outstanding with any borrower, it said.

The Voyager token, VGX, is trading 40% up today on the news of a potential bid by Binance.

The Block has reached out to Binance and Voyager for a comment and will update this story should we hear back.


© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.

Editor

To contact the editor of this story:
Adam James at
[email protected]

More by Yogita Khatri