Crypto lender Voyager's assets auctioned to FTX US
One of the top-rated cryptocurrency exchanges, FTX, has secured the auction for Voyager Digital’s assets. The crypto firm Voyager confirms that FTX US made the winning bid for the company’s assets, which was $1.422 billion.
Sam Bankman-Fried’s exchange competed for this sale with the crypto investment firm Wave Financial. Apart from that, Binance, CrossTower, and several other virtual asset firms also participated in the auction.
On Monday, the exchange issued a press release announcing the auction’s completion. It mentioned that the bidding war took place for two weeks. It has concluded with the Bahamas-based firm’s winning bid.
Moreover, it disclosed that the accepted bid includes the future market value of the firm, which is $1.311 billion. Also, it consists of an estimated incremental value of $111 million.
Bankruptcy of the crypto firm Voyager
Earlier this year, in July, crypto Voyager Digital filed for bankruptcy protection in the United States. Chapter 11 bankruptcy protection allows businesses to continue their operations while they figure out a plan for either restructuring or selling it.
It suffered losses of around $650 million as Three Arrows Capital (3AC) defaulted. When filing for the protection, the company was in financial ruin as it had a debt of $1 billion. Following that, it restrained its consumers from retrieving their funds.
What is in store for the future of Voyager Digital?
As of now, the company has not provided much information regarding its customer’s crypto funds. However, it has been mentioned that the information regarding how the customers will be able to access their funds will be shared “as it becomes available.”
Nonetheless, it clarified that the exchange would allow its customers to stock and trade their virtual assets. However, it will be authorised after the firm’s chapter 11 bankruptcy cases are resolved. Moreover, this deal will also be completed after the conclusion of the debt issues. The expected date for its decision is October 19.
Author: Wasay Ali
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