FTX wins auction to acquire Voyager Digital’s assets

Crypto exchange FTX US has won the bid for the assets of embattled crypto brokerage firm Voyager Digital, which to be approved by the UA Bankruptcy Court, with a bid valued at approximately $1.4 billion. Voyager hinted that its customers would eventually transition to the FTX platform after it finishes its Chapter 11 bankruptcy proceedings.

As Voyager revealed, the bid was made up of the fair market value of its crypto holdings “at a to-be-determined date in the future” estimated to be around $1.3 billion along with $111 million of what it says is “incremental value.”

Voyager stated that additional information “will be shared as it becomes available” regarding its customers still awaiting access to their crypto holdings. The firm noted that the FTX US platform “will enable customers to trade and store cryptocurrency after the conclusion of the company’s chapter 11 cases.“

A source also claimed Voyager customers would receive their pro rata share of crypto assets and transition to the FTX platform following its successful bid. The company said its filing was “aimed at returning maximum value to customers” and considered a reorganization, calling the sale to FTX US the “best alternative for Voyager stakeholders.”

As recently reported, crypto exchange Binance also submitted bids alongside FTX to acquire Voyager’s assets, proposing its own terms. Sources then suggested Binance leads slightly over FTX with a bid of $50 million.

On July 5, Voyager entered into a Chapter 11 bankruptcy, also called a “reorganization” bankruptcy, which allows a firm to retain control of its assets and continue operating whilst it plans to restructure or sell the business. The filing was for insolvency of over $1 billion after crypto hedge fund Three Arrows Capital (3AC) defaulted on a $650 million loan from the firm.

Source: 

https://cointelegraph.com/news/ftx-us-wins-auction-for-voyager-digital-s-assets