Reuters Crypto firm Voyager Digital Ltd said on Monday it will sell its assets to Binance.US in a deal valued at about 1 billion following a review.

Palo Alto, Californiabased Binance.US, which operates as an independent legal entity and has a licensing agreement with Binance.com, will make a 10 million deposit and reimburse Voyager for certain expenses up to 15 million. The purchase price comprises 20 million and repayments to Voyager39;s customers, while most of the 1 billion valuation consists of debt Voyager owes to clients.

Nearly 2 trillion in value has been wiped out from the crypto sector this year on rising interest rates and exacerbating worries of an economic downturn. The slump has eliminated key industry players such as Three Arrows Capital and Celsius Network.

However, the bigger blow came after larger crypto exchange FTX filed for bankruptcy protection last month. Its swift fall has also sparked tough regulatory scrutiny of how major exchanges hold user funds.

In September, Voyager Digital said FTX won an auction for its assets, in a bid valued at about 1.42 billion after Voyager filed for Chapter 11 bankruptcy protection in July.

Voyager said on Monday it will seek Bankruptcy Court approval for the deal with Binance.US at a hearing on Jan. 5, 2023.

FTX filed for bankruptcy last month and BankmanFried stepped down as chief executive, after traders pulled billions from the platform in three days and rival exchange Binance abandoned a rescue deal.

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