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.
Discover the stories of your interest
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”.
For all the latest Technology News Click Here
