Binance US buys Voyager Digital assets for $1.02 billion

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After bankruptcy court asked lawyers working on the case to revise the documents before he approves them, another obstacle for Binance takeover of Voyager appeared as SEC claims that deal would involve sale of unregistered securities.
Back in January SEC also objected the sale and asking Binance to provide more proof that they can actually afford the case and after that has been settled so it seems to me like they really want to stop this deal. Or maybe they are just extra diligent. Tongue

Quote from: https://www.coindesk.com/policy/2023/02/23/sec-objects-to-binanceus-1b-voyager-deal-alleging-sale-of-unregistered-securities/

Under the deal, “the transactions in crypto assets necessary to effectuate the rebalancing, the redistribution of such assets to Account Holders, may violate the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or delivery after sale of securities,” a filing by the SEC said, citing in particular the VGX token issued by Voyager.

“It is the Debtors’ burden to present credible evidence that the provisions of the Plan are feasible and not in violation of applicable law,” the SEC said. The regulator also cited media reports that Binance is bracing itself to pay penalties for past infractions of money laundering and corruption law as evidence that the deal could become "unfeasible" and “impossible to consummate."

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Quote from: bbc.reporter on December 21, 2022, 10:26:46 PM

Quote from: tabas on December 21, 2022, 04:47:41 PM

I know that CZ is investing in ventures and it keeps on going but what he's trying to prove? I doubt it that he just want to save the company and the people who has still some pending money there. Maybe he sees something that we can't see?
But we're all sure that we see the same thing that Voyager is already on the grave and it will barely stand up and even with his help, he's just throwing money there and good for the people if they'll still take their money out after the acquisition.

CZ is not trying to prove anything, I reckon. This is a business decision and his team might have made an assessment that there is value in absorbing Voyager clients and bring them to their own platform, binance.us. There might also be other things that might give Binance an advantage like old licenses that can be renewed, skilled employees necessary for Binance's expansion or some cryptocoin assets still being held by the company.

Hm, I understand. As I know, it still got assets and that might be just one of the reasons of the acquisition but there's still more value that Binance itself can take advantage by having Voyager on their board.

Quote from: Woodie on December 22, 2022, 04:29:51 PM

Quote from: tabas on December 21, 2022, 04:47:41 PM

I know that CZ is investing in ventures and it keeps on going but what he's trying to prove? I doubt it that he just want to save the company and the people who has still some pending money there. Maybe he sees something that we can't see?

My thoughts exactly, there is certainly more to his than meets the eye and CZ knows something because no one plays Santa on a ~~sinking boat~~ sunk boat !!

I think I understand it now but yeah, this is a corporation decision and they're in agreement that there's something that we can't see but only them.
Anyway, just hoping that they're not the next company to bite the dust although it is unlikely.

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Quote from: franky1 on December 24, 2022, 04:47:04 AM

i feel binance had plans to buy the data and/or the company months ago way before ftx any drama. but lost due to being outbid by FTX.
FTX didnt pay up and obviously died so it opened up opportunity again to binance.

This is exactly what happened few months ago (first time FTX won with $1.4 billion bid) and CZ confirmed it himself in an interview. Interestingly, he accused FTX that they spread rumours saying that it would be a threat to national security if it was allowed for Chinese company (Binance US) to buy Voyager. Here is the video with that interview https://twitter.com/crypto/status/1595673091803226112

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as for media playing up the stories
voyager made the announcements last week not binance. so its not like binance is on a propaganda tour shouting from the hill tops

also it is 2 deals
one for the company($1.02b ($10m upfront deposit,)) which wont start the buying process until january and has until april to finalise(timescales due to voyager bankruptcy bureaucracy/decisions)

the other deal is for "other incremental assets" for $20m which would be the customer data alone(mailing list)

..
i feel binance had plans to buy the data and/or the company months ago way before ftx any drama. but lost due to being outbid by FTX.
FTX didnt pay up and obviously died so it opened up opportunity again to binance.

from a business prospective getting customer data is like a mailing list of people highly interested in a product. its worth something to binance even if others think its some kind of donation to look good.

i dont see this as a "donation to look good" thing. i see it as business plan to get customer data to acquire customers

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Call me crazy, but I don't think buying out bankrupt loan companies is a good idea at all if you're in the crypto exchange business... that being said, I don't think Binance makes a living off being in the crypto exchange business 100%. There aren't many any more... it's more profitable to do a bunch of weird shit these days.

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Why do I feel this buy is happening out of guilt after CZ and company failed to bail out FTX when they needed a hand the most. Besides they say " once beaten twice shy" what's really the real intention of this takeover because I don't see Voyager Digital customers returning after what happened.. the only thing these guys have inherited here is debt unfortunately Roll Eyes

Quote from: tabas on December 21, 2022, 04:47:41 PM

I know that CZ is investing in ventures and it keeps on going but what he's trying to prove? I doubt it that he just want to save the company and the people who has still some pending money there. Maybe he sees something that we can't see?

My thoughts exactly, there is certainly more to his than meets the eye and CZ knows something because no one plays Santa on a ~~sinking boat~~ sunk boat !!

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Quote from: bbc.reporter on December 21, 2022, 10:26:46 PM

Quote from: tabas on December 21, 2022, 04:47:41 PM

I know that CZ is investing in ventures and it keeps on going but what he's trying to prove? I doubt it that he just want to save the company and the people who has still some pending money there. Maybe he sees something that we can't see?
But we're all sure that we see the same thing that Voyager is already on the grave and it will barely stand up and even with his help, he's just throwing money there and good for the people if they'll still take their money out after the acquisition.

CZ is not trying to prove anything, I reckon. This is a business decision and his team might have made an assessment that there is value in absorbing Voyager clients and bring them to their own platform, binance.us. There might also be other things that might give Binance an advantage like old licenses that can be renewed, skilled employees necessary for Binance's expansion or some cryptocoin assets still being held by the company.

Although this appeared to be a huge and timely statement-- that Binance doesn't have financial troubles or whatever-- I agree with you that this is probably not to prove anything. Headlines everywhere have it that Binance will buy Voyager's assets amounting to more than a billion as if Binance would actually release that huge of an amount. Of course, it won't. But Binance has already benefitted from those news already, especially from those who only read the headlines and not the details.

This is probably more business than a statement or a proof of something. So, this isn't altruism for the sake of Voyager's clients, either.

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Quote from: tabas on December 21, 2022, 04:47:41 PM

I know that CZ is investing in ventures and it keeps on going but what he's trying to prove? I doubt it that he just want to save the company and the people who has still some pending money there. Maybe he sees something that we can't see?
But we're all sure that we see the same thing that Voyager is already on the grave and it will barely stand up and even with his help, he's just throwing money there and good for the people if they'll still take their money out after the acquisition.

CZ is not trying to prove anything, I reckon. This is a business decision and his team might have made an assessment that there is value in absorbing Voyager clients and bring them to their own platform, binance.us. There might also be other things that might give Binance an advantage like old licenses that can be renewed, skilled employees necessary for Binance's expansion or some cryptocoin assets still being held by the company.

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I know that CZ is investing in ventures and it keeps on going but what he's trying to prove? I doubt it that he just want to save the company and the people who has still some pending money there. Maybe he sees something that we can't see?
But we're all sure that we see the same thing that Voyager is already on the grave and it will barely stand up and even with his help, he's just throwing money there and good for the people if they'll still take their money out after the acquisition.

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Quote from: Rikafip on December 19, 2022, 06:24:50 PM

No one put the gun on his head and forced him to do it.

No one that we know.... and nobody knows what is happening behind the scenes Wink

If you saw videos from Scam Bankman he was shaking like a junky, he was drinking heavy medications and probably he took drugs for some time to appear sort off normal in public.
I don't know full details around Voyager, but I can't possibly imagine why platform like that would be profitable in future, and yes I know people forget things to easy, but still...
There is nothing ''New Voyager'' is going to do that will make me consider using it for anything.

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Quote from: malcovi2 on December 19, 2022, 08:44:26 PM

https://www.forbes.com/sites/stevenehrlich/2022/12/19/binanceus-is-not-buying-voyagers-crypto-assets-for-102-billion-heres-whats-really-happening/?sh=50ac83801da7

Their main goal is only to acquire the customers data.

I do not know, but from your source the last deal in September between Voyager and FTX.US, which Binance participated in the original auction process during the summer, which was about $ 50 million, so I do not expect the platform to agree to a price of about $ 20 million after bankruptcy, there is nothing to lose now.

Will the bankruptcy court allow the data to be transferred to a third party just to pay $20 million, or after all customer requests are covered?

Binance can buy data from the black market at a cheaper rate if they only want data.

Source https://www.forbes.com/sites/stevenehrlich/2022/12/19/binanceus-is-not-buying-voyagers-crypto-assets-for-102-billion-heres-whats-really-happening/?sh=50ac83801da7

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Quote from: malcovi2 on December 19, 2022, 08:44:26 PM

Their main goal is only to acquire the customers data.

I'm not sure whether the main goal is acquiring customers' data alone, but this is basically what this deal is all about. It's Voyager's customers that they will have the right to. So this deal is not literally Binance.US buying Voyager Digital assets worth $1.02 billion. The assets won't actually be liquidated. Binance.US won't be shelling out $1.02 billion. They will only pay $20 million for the right over Voyager's customers. Once that's approved, the customers will have their funds back. They're free to decide on what to do with them.

This is now way cheaper than when they first made their bid for Voyager against FTX months ago. Binance.US originally offered $50 million for the same, and they lost. Now they won with only $20 million bid.

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https://www.forbes.com/sites/stevenehrlich/2022/12/19/binanceus-is-not-buying-voyagers-crypto-assets-for-102-billion-heres-whats-really-happening/?sh=50ac83801da7

Their main goal is only to acquire the customers data.

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Quote from: dkbit98 on December 19, 2022, 06:07:54 PM

If I remember correctly, FTX also planned to take them over, but we all know how that ended up so at least I hope people will be able to get their money back.

FTX offered 1.4 billion USD few months ago, but it of course failed after they declared bankruptcy as well. Back then Binance as well sent the bid, but FTX had higher one so this was their 2nd attempt.

Quote from: dkbit98 on December 19, 2022, 06:07:54 PM

I don't know really, just speculation here, but this could be self-destruction button presses by CZ, so he can later blame Voyager for Binance collapse.

I like to think that CZ is a bit smarter and more experienced guy and won't do the same mistake after he saw what has happened with SBF, but time will tell as smart people do stupid things. Then again, how can he blame Voyager for the eventual Binance collapse if it was his decision to buy them. No one put the gun on his head and forced him to do it.

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Quote from: Rikafip on December 19, 2022, 10:12:36 AM

Voyager Digital, who first stopped all withdrawals and deposits earlier this year and then declared bankruptcy, accepted the offer from Binance and will sell their assets for 1.022 billion USD. If I remember correctly, FTX also planned to take them over, but we all know how that ended up so at least I hope people will be able to get their money back.

I saw that Voyager shitcoin price jumped a lot after releasing this news in public, so I wouldn't trust anything until I see official confirmation.
If I remember correctly this takeover of Voyager was talked and even before crash of FTX exchange but then it was canceled or paused.
For me this is waste of money or pure speculation and gamble move from CZ, maybe to divert attention in other direction and confirm how Binance has more than enough capital.

Quote from: stompix on December 19, 2022, 11:55:28 AM

The buy has not been approved by the bankruptcy court, it's scheduled for next year in January if there is a refusal the whole deal is off.
As for the value, it will still be the task of the court to see how much every creditor gets, they have total fillings of 1.8 billion right now and only got 1.02 billion for them, so of course, somebody will be at a loss.

I don't know really, just speculation here, but this could be self-destruction button presses by CZ, so he can later blame Voyager for Binance collapse.

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Quote from: crwth on December 19, 2022, 11:41:48 AM

but if Binance US thinks that it’s a good thing to do, why not? It’s better to get something back for those who are affected with this than nothing

It is surely good for the Voyager customers owed money to get something back if the deal works, but Binance U.S is a business and not good samaritans that would want to make this purchase so they could pay people back what they are owed from another collapsed company, even when it looks like they will make a loss. I think Binance company are doing this to appear good in the industry with the many talk lately of them being insolvent.

Quote from: crwth on December 19, 2022, 11:41:48 AM

Or are there favours behind it? That can be connected with the FTX thing? Just thinking out loud.

I don't think this is connected with the ftx thing, other than ftx wanted to buy Voyager but then went bankrupt, and now Binance U.S wants to take over Voyager themselves.

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Quote from: DaveF on December 19, 2022, 11:05:20 AM

Did a quick look and could not find it, are the court-approved disbursements for the full value of what was owed or is it just a percentage?
Usually when it's the full payback there is text about 'all investors will receive the full value of what is due them' or some similar language. This just seems a bit vague.

The buy has not been approved by the bankruptcy court, it's scheduled for next year in January if there is a refusal the whole deal is off.
As for the value, it will still be the task of the court to see how much every creditor gets, they have total fillings of 1.8 billion right now and only got 1.02 billion for them, so of course, somebody will be at a loss.

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I’m quite speculative with what’s happening here because helping it out and buying out Voyager is something that would probably be a risky move with every businessman, but if Binance US thinks that it’s a good thing to do, why not? It’s better to get something back for those who are affected with this than nothing

Or are there favours behind it? That can be connected with the FTX thing? Just thinking out loud.

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Quote from: bittraffic on December 19, 2022, 11:21:47 AM

I think the podcast people are right when they said CZ should just let Voyager fall because this is a tragedy waiting to happen once again. CZ isn't impressing anyone with this since he is on the path of SBF upon bailing out other crypto companies.

This bid is yet not final since it will be decided by Jan 2023. CZ might change his mind when he learns how much is to be sent out to its clients. If he is doing this for a show so to prove Binance is not insolvent then this is not going to work well for him.

Probably he is following the step of FTX for the sake of publicity. Buying this company means your carrying all the responsibilities for all the existing customers money. There’s no benefit on doing this besides making a good publicity for binance by saving user funds trapped on the DeFi.

Binance.Us is operating independently and probably CZ is using it so that US SEC can’t touch it since they are now attacking the main Binance.

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I think the podcast people are right when they said CZ should just let Voyager fall because this is a tragedy waiting to happen once again. CZ isn't impressing anyone with this since he is on the path of SBF upon bailing out other crypto companies.

This bid is yet not final since it will be decided by Jan 2023. CZ might change his mind when he learns how much is to be sent out to its clients. If he is doing this for a show so to prove Binance is not insolvent then this is not going to work well for him.

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Quote from: Rikafip on December 19, 2022, 10:12:36 AM

Quote from: https://www.coindesk.com/business/2022/12/19/binanceus-agrees-to-buy-bankrupt-crypto-lender-voyagers-assets-for-over-1b/

"The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities," Voyager said in the statement.

Did a quick look and could not find it, are the court-approved disbursements for the full value of what was owed or is it just a percentage?
Usually when it's the full payback there is text about 'all investors will receive the full value of what is due them' or some similar language. This just seems a bit vague.

Either way something back is better then nothing back.

-Dave

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Voyager Digital, who first stopped all withdrawals and deposits earlier this year and then declared bankruptcy, accepted the offer from Binance and will sell their assets for 1.022 billion USD. If I remember correctly, FTX also planned to take them over, but we all know how that ended up so at least I hope people will be able to get their money back.

Quote from: https://www.coindesk.com/business/2022/12/19/binanceus-agrees-to-buy-bankrupt-crypto-lender-voyagers-assets-for-over-1b/

Voyager Digital, the bankrupt crypto lender, said Binance.US has agreed to buy its assets for $1.022 billion, the firm said on Monday.

The bid represents the fair market value of Voyager's cryptocurrency portfolio, which has a current market value of around $1.002 billion, and an additional consideration of $20 million in incremental value.

"The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities," Voyager said in the statement.

Topic: Binance US buys Voyager Digital assets for $1.02 billion (Read 186 times)