Binance to Relaunch Bid for Bankrupt Lender Voyager Following FTX Collapse

Changpeng Zhao on poker chips
  • Binance is relaunching its bid to acquire Voyager Digital, a bankrupt crypto lending platform.
  • Binance had tried to acquire Voyager at an auction back in September, but was outbid by FTX US.
  • Voyager said that they were in “active discussions with several alternative bidders”.

Binance will relaunch its bid to acquire Voyager Digital, a bankrupt crypto lending platform, a person familiar with the matter told CoinDesk. 

Voyager reopened bidding for a takeover after its $1.4 billion deal with FTX US fell through due to FTX’s bankruptcy. 

Binance, the biggest crypto exchange by trading volume, tried to acquire Voyager at an auction back in September. However, FTX US, a subsidiary of the FTX exchange, outbid Binance’s offer.

Binance is not the only company that wants to acquire Voyager. Earlier today, Voyager tweeted that they are in “active discussions with several alternative bidders.”

In addition to Binance, financial services company Wave Financial and crypto exchange Cross Tower are also reportedly interested in buying the bankrupt lending platform.

Earlier, Voyager Digital issued a press release saying that they are in active discussion with several potential buyers. They said that they are working on a reorganization plan with the “core objective” of “maximizing the value returned to customers and other creditors.”

Voyager’s native VGX token jumped 50% after the news of Binance’s acquisition broke. The token is currently trading at $0.41, up almost 50% in the last 24 hours.

voyager token binance

Binance’s Crypto Recovery Fund

Following the FTX collapse, Binance CEO Changpeng Zhao (CZ) announced the formation of a crypto recovery fund to help the crypto projects that are impacted.

"To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis," CZ wrote in a tweet. He also invited other industry players to contribute to the fund.

Voyager Collapse and Three Arrows Capital

Voyager Digital’s troubles started with the collapse of the Singapore-based crypto hedge fund Three Arrows Capital (3AC). The $10 billion hedge fund employed risky trading strategies and was one of the casualties of the drop in crypto prices. The fund failed to meet its margin call and collapsed.

Subsequently, Voyager Digital revealed that it had $661 million exposure to 3AC, which threatened to wipe out the company. In July, Voyager would file for bankruptcy itself and open bids for a takeover.

Both Binance and FTX placed their bids to take over Voyager Digital following the collapse of 3AC. Ultimately, FTX secured the $1.4 billion deal. However, FTX itself would go under a few months later, before finalizing the deal.

On the Flipside

  • Binance has not yet confirmed that it intends to buy the platform. Voyager Digital declined to respond to news inquiries on any of the potential offers.

Why You Should Care

Voyager Digital is one of the dominos that fell due to too much leverage in the crypto markets, together with 3AC and Terra-Luna. If Voyager goes under, other crypto projects will be affected.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Author

David Marsanic is a business journalist specializing in tech and crypto. He focuses on institutional investors, venture capital and the intersection between DeFi and tradFi. He wants to help retail investors understand how major financial institutions impact the crypto space. He has been active in blockchain and crypto since 2020 and believes that there is huge potential in decentralized tech and finance.