Binance.US, the US arm of the world’s largest cryptocurrency exchange by volume, is making a new bid for Voyager Digital’s assets, CEO Changpeng “CZ” Zhao said Thursday.
TSX-listed Voyager Digital filed for Chapter 11 bankruptcy nearly four months ago following the collapse of major crypto tokens TerraUSD and Luna. In September, FTX.US won an auction to buy the assets of a Canadian digital asset broker with a bid of just over $1.42 billion. But the collapse of FTX and its affiliates left the bankrupt crypto lender without a buyer.
“Binance.US will now make another bid for Voyager given that FTX is no longer able to meet this commitment. I think US national security concerns were rumors spread by FTX to try and discourage us from bidding. There was never any concern about our participation in the tender,” said CZ.
Binance has previously acted as one of the top bidders for Voyager Digital’s assets with the highest price. This came after bankruptcy lawyers for Voyager rejected Bankman-Fried’s asset purchase offer, calling the offer “a cheap offer disguised as a white knight rescue.”
Following the collapse of FTX Voyager, the bidding process was reopened and its board was reportedly in active discussion with alternative bidders. The company also claims that it did not transfer any assets to FTX in connection with the previous sale agreement.
Voyager, which has over 100,000 creditors and billions of dollars in liabilities, was caught in the collapse of cryptocurrency hedge fund Three Arrows Capital, suffering more than $650 million in losses.
Sam Bankman-Fried offered Voyager a lifeline by offering his clients early access to liquidity. As part of the proposed restructuring deal, FTX.US wanted to buy all Voyager crypto assets and loans in cash at market value, with the exception of loans to failed cryptocurrency hedge fund Three Arrows Capital.
If approved, Voyager customers could claim some of their funds that were frozen by opening a new FTX account.
In response, Voyager’s bankruptcy lawyers got into a public brawl with Sam-Bankman Freed, whose proposal they described as harmful, misleading, and only beneficial to FTX.
At the time, SBF responded that its plan would give Voyager customers the ability to access assets that would otherwise be locked up for a significant amount of time. He added that only bankruptcy lawyers would benefit from dragging out the proceedings while the case goes through bankruptcy court while clients “fuck off.”