The Binance Factor: Why A Bankrupt Crypto Lender's Token Is Up 23% Today

Voyager Digital’s native token VGX/USD is up 23% in the last 24 hours after Binance.US made a deal to buy the assets of the insolvent crypto lender for $1.02 billion.

What Happened: At the time of writing, VGX was trading at $0.35, with a market cap of $104 million. Apex crypto Bitcoin BTC/USD was trading at $16,608 up 0.19%. Ethereum ETH/USD was trading at $1,193, up 0.72% in the last 24 hours, according to Benzinga Pro.

Since Binance announced its acquisition of Voyager Digital, social engagement has skyrocketed by an incredible 2,247%, with total engagements reaching 5.78 million, according to Lunar Crush. 

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The proposal from the U.S. division of the largest cryptocurrency exchange "sets a clear path forward for Voyager customers' funds to be unlocked as soon as possible, and returned to them in the form of the cryptocurrencies previously held in their Voyager accounts," according to an official post from Binance.US.

Binance.US will provide $10 million as a gesture of good faith and up to $15 million to cover certain costs as reimbursement to Voyager.

Voyager filed for Chapter 11 bankruptcy protection in July due to its significant exposure of around $650 million to Three Arrows Capital.

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Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.