Binance US’ Acquisition of Voyager Assets Set to Bolster its Competitive Edge and Appeal to Institutional Investors

• The American subsidiary of Binance, Binance US has defeated the SEC as a bankruptcy judge rules that Voyager is allowed to sell its assets.
• As part of its deal with Binance U.S. Voyager Digital plans to reimburse users who lost their money when the crypto lender went bankrupt.

Binance US Acquires Voyager’s Assets in $1 Billion Deal

Binance US, the American affiliate of the leading cryptocurrency exchange Binance, has won court approval to acquire Voyager’s assets. The deal will enable Binance US to expand its offerings and provide a wider range of crypto services to its users.

Voyager Digital Ltd. is a crypto asset broker that provides a trading platform for investors to buy and sell cryptocurrencies. The firm is based in Canada but has a presence in the US, where it operates under the name Voyager Digital (USA) LLC.

The deal was subject to approval by the court overseeing Voyager’s Chapter 11 bankruptcy proceedings in the US. On March 5, 2023, the court approved the deal, allowing Binance US to acquire Voyager’s assets for over $1 billion.

The acquisition of Voyager’s assets will further strengthen Binance US’s position in the US crypto market and help it compete with other leading crypto exchanges such as Coinbase and Kraken. The move is also expected to attract more institutional investors to the platform, who are looking for a reliable and secure platform to invest in cryptocurrencies.

The approval of the deal comes after months of uncertainty for Voyager customers, who were left wondering if they would be able to recover their funds. The deal provides some relief to these customers, as they will now be able to access their funds through Binance US.

However, it is important to note that the deal is not yet finalized, and there is still a chance that it could be blocked by regulators. If the deal is blocked, Voyager customers may not be able to recover their funds in full.

Despite the risks, the acquisition of Voyager’s assets is a significant win for Binance US. The deal will allow Binance US to expand its offerings and become a more competitive player in the US crypto market. It will also be a test of Binance US’s ability to navigate the regulatory landscape in the US.

The Fiasco around Voyager

Voyager Digital’s bankruptcy filing was a major blow to the crypto industry, and it highlighted the risks associated with investing in cryptocurrencies. The company’s problems were exacerbated by the recent bear market, which has caused the prices of cryptocurrencies to plummet.

Voyager’s bankruptcy filing also raised questions about the stability of other crypto exchanges. Some investors have expressed concerns that other exchanges could be at risk of bankruptcy, and they have called for more regulation of the crypto industry.

The approval of the Binance US acquisition of Voyager’s assets is a positive development for the crypto industry. The deal shows that there is still interest in crypto, and it could help to restore confidence in the industry. However, it is important to remember that the crypto market is still volatile, and there is no guarantee that the industry will avoid future setbacks.