Cryptocurrency lender Voyager Digital Ltd. has announced that it will liquidate its assets and wind down operations after failing to sell to either FTX US or Binance.US.
The announcement came after Binance US pulled out of a $1 billion deal to purchase Voyager Digital's assets, following a U.S. government intervention to block part of the deal. The crypto lender had a similar bid to sell itself to FTX before FTX followed Voyager into bankruptcy last November.
Voyager's customers will receive an initial recovery of 36% of their crypto holdings, a far smaller amount than they would have received if the sale to FTX or Binance US had gone through. The recovery rate could increase if defunct crypto trading firm Alameda Research's bid to claw back $446 million from Voyager's estate fails. Voyager will also be withholding an additional $259.6 million for litigation costs, administrative claims, and other "holdbacks."