Insolvent Voyager Digital Starts Liquidating Crypto Assets to Coinbase
- Voyager Digital and Binance US have agreed on a price for the exchange’s holdings.
- The insolvent firm has 268 million ETH, 236 million USDC, and 77 million SHIB.
After declaring bankruptcy in July 2022, Voyager Digital has been looking at numerous options for reviving the firm ever since. At first, there was an agreement with FTX, which was terminated when that company collapsed soon after FTX won the auction for its assets. Ultimately, FTX would file a lawsuit against Voyager to recoup the money from a returned loan.
Since then, Voyager Digital and Binance US have agreed on a price for the collapsed exchange’s cryptocurrency holdings, with Binance US offering $1.02 billion in return. Then, Binance US might compensate its Voyager creditors for 51% of their debt. The SEC raised objections to the acquisition, citing regulatory problems, and it has since halted.
Outright Sale of Assets
In contrast to Binance US’s acquisition, Voyager may simply refund clients out of its own funds, which would result in reduced compensation for everyone involved. Another possibility, the outright sale of the company’s assets, seems to have been considered.
Arkham Intel, a blockchain research and analysis business, claims that Voyager Digital has started liquidating its cryptocurrency holdings on other cryptocurrency exchanges, namely Coinbase, for fiat currency. Every week, around $100 million worth of assets are liquidated. Voyager has 268 million ETH, 236 million USDC, and 77 million SHIB, as reported by Arkham.
The group at blockchain intelligence company Lookonchain has produced a list of digital assets (including LINK, UNI, and more) that have been transferred to Coinbase during the previous few days. It is still unknown if Voyager will use the money to refund creditors, pay off debts, or combine its assets into cash in order to facilitate a takeover.
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Read more: https://thenewscrypto.com/insolvent-voyager-digital-starts-liquidating-crypto-assets-to-coinbase/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
