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Palo Alto, California-based Binance.US, which operates as an
independent legal entity and has a licensing agreement with
Binance.com, will make a $10 million deposit and reimburse
Voyager for certain expenses up to $15 million.
Nearly $2 trillion in value has been wiped out from the crypto
sector this year on rising interest rates and exacerbating
worries of an economic downturn. The slump has eliminated key
industry players such as Three Arrows Capital and Celsius
Network.
However, the bigger blow came after larger crypto exchange FTX
filed for bankruptcy protection last month. Its swift fall has
also sparked tough regulatory scrutiny of how major exchanges
hold user funds.
In September, Voyager Digital said FTX won an auction for its
assets, in a bid valued at about $1.42 billion after Voyager
filed for Chapter 11 bankruptcy protection in July.
Voyager said on Monday it will seek Bankruptcy Court approval
for the deal with Binance.US at a hearing on Jan. 5, 2023.
FTX filed for bankruptcy last month and Bankman-Fried stepped
down as chief executive, after traders pulled billions from the
platform in three days and rival exchange Binance abandoned a
rescue deal.
The collapse has fanned fears about the future of the crypto
industry after FTX outlined a "severe liquidity crisis".
(Reporting by Manya Saini in Bengaluru; Editing by Krishna
Chandra Eluri and Shounak Dasgupta)
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