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Voyager Digital accepts $1bn Binance.US offer for assets

By Alara Jordan

10:46, 22 December 2022

Binance logo
Voyager Digital’s native token, VGX, rose by more than 30% after it was announced that Binance won the bid – Photo: Shutterstock

The bankrupt crypto lender Voyager Digital has agreed a deal for Binance.US to acquire its assets for an estimated $1.022bn. 

The deal will now go before a bankruptcy court in the United States on 5 January 2023 for approval.

Binance.US, a subsidiary of the global cryptocurrency exchange founded by Changpeng Zhao in 2017, said the takeover would set “a clear path forward for Voyager customers’ funds to be unlocked as soon as possible.”

Brian Shroder, CEO and president of Binance.US, said the bid for Voyager was a reflection of firm's guiding principle where customers “come first.” 

Shroder said: “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.”

BNB to USD

Binance’s chief executive, Changpeng “CZ” Zhao ,had previously said that Binance’s US subsidiary would make an acquisition offer for Voyager Digital, after the downfall of FTX and the chaos that unfolded shortly after. 

FTX, which was once the third-largest cryptocurrency exchange, had originally won the bid to take over Voyager Digital in the summer. 

SOL/USD

178.98 Price
+2.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

ETH/USD

3,331.11 Price
-4.600% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

65,469.80 Price
-0.590% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.13 Price
-1.470% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

The acquisition deal also confirms that Binance.US will make a $10m good faith payment and will reimburse Voyager for expenses up to a maximum of $15m. If the acquisition deal has not finalised by 18 April 2023, with a one-month extension, the agreement will allow Voyager to move to return value to customers.

VGX, the native token of Voyager Digital, rose by more than 30% after it was announced that Binance had won the bid. At 10am UCt on 22 December VGX was trading at $0.31,down more than 7.7% over the previous 24 hours.

Binance has been the subject of market-wide fear, uncertainty and doubt (FUD) after the chaos surrounding FTX's downfall, and has faced accusations over potential solvency issues.

Last week, Binance lost its auditor, Mazars Group, after the firm said on 16 December that it had paused all work for clients in the crypto industry.

According to data from Delphi Digital, Binance saw more than $5bn of net outflows between 13 and 14 December, recording the largest two-day outflow since the exchange announced it will provide proof of reserves on 10 November. 

Zhao, however, has remained positive and declined any potential solvency issues, stating that “fear, uncertainty and doubt  is temporary. Truth lasts.”

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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