Following a review, cryptocurrency company Voyager Digital Ltd announced on Monday that it will sell its assets to Binance.US in a deal worth about $1 billion.
Binance.US, based in Palo Alto, California, which is a separate legal entity from Binance.com and has a licensing agreement with it, will deposit $10 million and reimburse Voyager for some costs up to $15 million.
This year, the crypto market has lost nearly $2 trillion in value due to rising interest rates and growing concerns about an impending recession. Crucial business players like Celsius Network and Three Arrows Capital have been eliminated by the downturn.
The bigger blow, though, was when the bigger cryptocurrency exchange FTX sought bankruptcy protection last month. Due to its quick decline, major exchanges’ user fund holding practices are now under intense regulatory scrutiny.
After Voyager Digital filed for Chapter 11 bankruptcy protection in July, the company announced in September that FTX had won an auction for its assets in a bid estimated to be worth $1.42 billion.
On Monday, Voyager announced that it would ask the bankruptcy court to approve the agreement with Binance.
Bankman-Fried left his position as CEO and FTX filed for bankruptcy last month after traders withdrew billions from the platform in just three days and a rival exchange, Binance, abandoned a rescue plan.
(Adapted from USNews.com)