FTX Wins Voyager’s Asset Auction

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2022-09-29 15:00:44

Late on September 26, Voyager Digital said that crypto exchange FTX had overcome two “rivals” Binance and Wave Financial to win an auction of its assets, with about 1.42 billion USD.

FTX successfully acquired Voyager Digital’s assets

According to the press release, FTX’s bid includes the fair market value of all cryptocurrencies in Voyager’s possession. The entire property is estimated to be worth $1.31 billion at current market prices and with that comes a value-added tax of about $111 million.

Earlier, the Wall Street Journal reported that FTX and Binance are leading the Voyager auction. In which, Binance offered a higher bid than FTX with 50 million USD.

The property auction began in mid-September at the law office of Kirkland & Ellis. Binance has offered to buy back the platform for $50 million, slightly above FTX. At this point, the lawyers have not yet officially updated the bidding progress, only revealing that the process is still ongoing. Bidders can submit a variety of proposals, ranging from property purchases to Voyager resuscitation and restructuring efforts.

In addition, Voyager affirmed that it will continue to complain and file charges against the investment fund Three Arrows Capital for failing to repay a loan worth more than $650 million. In June, Voyager Digital notified hedge fund Three Arrows Capital of 15,250 BTC ($325 million worth) and 350 million USDC debt.

3AC (Three Arrows Capital) is said to be the main cause of Voyayer's downfall
3AC (Three Arrows Capital) is said to be the main cause of Voyayer’s downfall

Despite receiving a bailout offer from billionaire Sam Bankman-Fried’s FTX earlier this year, Voyager rejected it, seeing it as not benefiting users and disrupting the company’s bankruptcy process.

Amid the COVID-19 pandemic, crypto lenders including Voyager have attracted large numbers of depositors by offering high interest rates and easy access to loans that traditional banks rarely offer. grant. However, the crisis in the crypto market has caused “hurt” for both companies and investors.

In July, crypto lender Voyager Digital officially filed for bankruptcy. Industry observers have increased scrutiny of Voyager’s business practices, particularly the way the company is listed in Canada, and said investor deposits are insured by the Federal Deposit Insurance Corporation. (FDIC).

Voyager Digital has filed for Chapter 11 bankruptcy
Voyager Digital has filed for Chapter 11 bankruptcy

In fact, while FDIC insurance will protect bank deposits of up to $250,000, the company will not insure cash that is converted into stablecoins. In its Chapter 11 bankruptcy filing in July, Voyager estimated that it had more than 100,000 creditors and $1 billion to $10 billion in assets, as well as debts of about the same value.

Last week, Voyager said its Chief Financial Officer Ashwin Prithipaul is preparing to step down within months of being appointed at the crypto lending firm.

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