Binance and FTX Lead Voyager Auction

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2022-09-23 02:33:43

Cryptocurrency giants Binance and FTX are participating in Voyager Digital’s asset auction.

Voyager creditor committee Twitter account suspended

Since yesterday afternoon (September 20), the @VoyagerUCC account associated with the committee representing the interests of creditors and customers in Voyager’s bankruptcy proceedings has been disabled by Twitter. Playing an important role in the bankruptcy process, this committee helps determine which individuals or parties get paid out of the assets in the event of a bankruptcy. Committee representatives regularly use this account to communicate with clients and stakeholders after the incident.

“Even though the account has been disabled, we are still working hard, trying to speed up the process.” – The representative of the committee said.

FTX and Binance are leading the asset auction

FTX and Binance are leading the asset auction
FTX and Binance are leading the asset auction

The Wall Street Journal reports that FTX and Binance are leading the Voyager auction. Binance raised a bid of $50 million, “slightly” better than FTX. The actual auction began last week, at the law office of Kirkland & Ellis.

Currently, the lawyers have not officially updated the bidding process, only revealing that this process is still ongoing. Bidders can submit a variety of proposals, ranging from property purchases to Voyager resuscitation and restructuring efforts.

As previously reported, Voyager was a criminal as well as a victim in the mid-June crypto liquidity crisis. A $485 million crypto loan from Alameda Research also failed to save Voyager Digital. In the end, the company still had to sadly declare bankruptcy before the pressure of users to withdraw money and the associated consequences from Three Arrows Capital.

There have been further reports that Alameda Research is “backward” on Voyager $377 million. In July, Alameda Research’s affiliated organization, the FTX exchange, offered to rescue Voyager early, but was turned down when the organization’s legal team reacted harshly.

Alamenda Research recently filed a court claim that it will repay all of its $200 million debt to Voyager this September. The request will need to be approved by the bankruptcy court before it can be enforced, which is expected to be before September 30.

Acquisitions of companies with operations in the United States by foreign entities are prevented by the Commission on Foreign Investment in the United States (CFIUS) due to concerns about national security risks. During the auction, Binance was asked to add funds to the bid as insurance in the event of a delayed intervention by CFIUS.

Voyager’s new owner is expected to be announced on September 29.

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