Voyager Digital to Shut Down and Liquidate Assets Following Failed Deals with FTX and Binance.US

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Mon, 25 Sep 2023, 04:36 PM
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Voyager Digital to Shut Down and Liquidate Assets Following Failed Deals with FTX and Binance.US

Cryptocurrency Trading Platform's Closure Marks Significant Setback for the Industry Amid Volatility and Risk

Mon, 08 May 2023, 17:10 pm UTC

New York-based cryptocurrency trading platform Voyager Digital announced its plan to shut down and liquidate its assets following failed deals with two major players in the industry, FTX and Binance.US.

According to the company's press release on Friday, negotiations with the two exchanges were terminated after "both parties were unable to reach mutually agreeable terms." As a result, Voyager Digital decided to pursue other strategic alternatives, which ultimately led to the decision to shut down its operations and distribute its remaining assets to shareholders.

Voyager Digital had initially announced the potential acquisition by FTX in February, but the talks fell through in March. The company then turned to Binance.US in April, but the discussions were also unsuccessful.

The news came as a shock to Voyager Digital's users and investors, who were left scrambling to understand what would happen to their funds. The company reassured its customers that their assets would be safe and that it was working on an orderly wind-down process. Voyager Digital also emphasized that it had sufficient capital to meet its obligations to customers and stakeholders.

The decision to liquidate and shut down marks a significant setback for Voyager Digital, which had been making strides in the cryptocurrency trading space. The company had reported strong growth in its user base and trading volume, with its share price increasing by more than 900% in the past year. However, the failed deals with FTX and Binance.US dealt a severe blow to its prospects, forcing it to make the difficult decision to close its doors.

The cryptocurrency market is known for its volatility, and the closure of Voyager Digital is a stark reminder of the risks involved. While some industry players may view the move as a setback, others may see it as an opportunity to learn from Voyager Digital's experience and strengthen their own operations.

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