Voyager Digital Insolvent Crypto Assets Will Be Purchased By FTX
Voyager Digital's Insolvent Crypto assets will be purchased by FTX?through its U.S. affiliate FTX.US.?The release claims that Voyager has accepted the exchange's $1.4 billion offer to buy it out, defeating rival bidders Wave Financial and Binance in the process.
Cryptocurrency exchange FTX through its U.S. affiliate FTX.US won the bid to buy the assets of Voyager Digital, a crypto investment firm that filed for Chapter 11 bankruptcy in July.
On Monday, Crypto exchange FTX through its U.S. affiliate (FTX US), according to bankruptcy-plagued crypto lender Voyager, has made the highest bid for its assets. According to a press release from Voyager, the winning bid in the two-week auction process was $1.422 billion, which included all of the cryptocurrency owned by Voyager, which is currently valued at $1.311 billion at market value, as well as an additional consideration with an incremental value of about $111 million.
Voyager said that after the chapter 11 case is concluded, users will be able to trade and store their cryptocurrency holdings on the FTX US platform. The bankrupt estate, which would share any potential recovery, will continue to hold Voyager's claims on outstanding loans it provided to the bankrupt hedge fund Three Arrows Capital. At least $650 million was lent to Three Arrows by Voyager.
After taking into account both potential sales and a freestanding restructuring, the debtor company claimed it had concluded that FTX's offer was the best option for Voyager shareholders. The crypto lender filed for Chapter 11 bankruptcy on July 5, which began a three-month bankruptcy process that ended with the auction.
The company had 3.5 million users and $1.3 billion in customer assets on its platform at the time of its bankruptcy filing. Bankman-Fried has been working to rescue struggling cryptocurrency companies experiencing liquidity issues as the value of cryptocurrencies fell in May and June. After the company's series D investment round valuation peaked at $3 billion in March 2021, FTX inked a deal with BlockFi, another financially troubled crypto lender, for up to $680 million at the beginning of July.
The transaction came after FTX purchased the clearing company Embed and the trading platform Bitvo in Canada. Voyager Digital received a joint proposal from FTX and its sister business Alameda Research, which is also majority controlled by Bankman-Fried, in late July to purchase its client assets.
Voyager paid out $270 million at the start of August from cash accounts that the court determined were not a part of the bankruptcy estate. Alameda also consented earlier this month to pay back a $200 million loan it received from Voyager by the end of September.
By the time of publication, neither FTX nor Voyager would make any additional comments beyond the news release.
CBW - External Analyst