VGX Token Rises 32% After Reporting Over $1 Billion Deal
Voyager Digital announced that it has chosen the American platform BAM Trading Services Inc. (operating under the Binance.US brand) to sell its assets to it. The decision was made during the auction, in addition to Binance, Wave Financial and the Cross Tower cryptocurrency trading platform participated in them.
In June, the Voyager platform faced default on a loan to Three Arrows Capital. On July 1, the company announced a temporary suspension of trading, accepting deposits and withdrawing funds, and on July 5 filed for bankruptcy. The document indicated that both the corporation’s assets and its liabilities range from $1 billion to $10 billion, and the number of Voyager customers with outstanding claims exceeds 100,000.
Voyager has already held one auction in September. At that time, it was won by the now bankrupt FTX exchange, which offered $1.4 billion for the company’s assets (the value of all Voyager crypto assets is $1.311 billion and the reward is $111 million). The transaction did not take place, and new auctions were scheduled.
Binance.US offered Voyager $1.022 billion, including the value of Voyager’s cryptocurrency portfolio of $1.002 billion and an additional $20 million reward. Voyager’s claims against Three Arrows Capital remain in the bankrupt’s estate, and any future recovery from these and other outstanding claims will be distributed to creditors property, the statement said.
Binance. US will deposit $10 million in good faith and pay up to $15 million in reimbursements to Voyager for specific costs. In the event that the transaction does not close by April 18, 2023, subject to a one-month extension, the agreement enables Voyager to start returning value to clients right away.
For now, Binance.US will deposit $10 million and reimburse Voyager for certain expenses up to a maximum of $15 million. And on January 5, 2023, Voyager will seek court approval for the transaction between the companies.
Voyager Digital LLC will ask the bankruptcy court for permission to sign the asset purchase agreement with Binance.US. The sale to Binance.US will be completed in accordance with a Chapter 11 plan, which must be approved by a majority of creditors and satisfy other standard closing requirements. After the Bankruptcy Court has approved the chapter 11 plan, Binance.US and the Company will work to swiftly complete the transaction.
The Voyager VGX (VGX) token has risen in price by 30% after the announcement of the deal. The rate of cryptocurrency at the moment rose from $0.3 to $0.39. At 17:30 Moscow time, VGX continues to trade at $0.39, according to CoinGecko. With a market capitalization of $113 million, the daily trading volume was $18 million.
About Voyager Digital Ltd.
Voyager Digital, LLC, a US subsidiary of Voyager Digital Ltd. (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), is a cryptocurrency platform that was established in 2018 with the goal of bringing competition, openness, and cost-effectiveness to the market. With its user-friendly smartphone application, Voyager provides a safe way to trade more than 100 different crypto assets. Voyager offers cryptocurrency payment options to customers and merchants worldwide through its subsidiary Coinify ApS. Visit https://www.investvoyager.com to find out more information about the business.
