Finance & Economics

FTX US wins auction for Voyager Digital’s assets 

Voyager has completed an auction under its chapter 11 bankruptcy proceedings, with FTX US securing the winning bid

FTX US Voyager

FTX US wins auction for Voyager Digital’s assets. Source: pexels.com

The bankrupt crypto brokerage Voyager Digital announced the cryptocurrency exchange FTX US secured the winning bid for its assets at the competitive auction. The bid was valued at approximately $1.4 billion.

Little information is available regarding what will happen to Voyager customers. Currently, they are still waiting for access to their crypto holdings. Meanwhile, Voyager only mentioned that the FTX US platform “will enable customers to trade and store cryptocurrency after the conclusion of the company’s chapter 11 cases.”

The final asset sale will complete after a chapter 11 plan and an asset purchase agreement is submitted for approval by the U.S. Bankruptcy Court for the Southern District of New York on Oct. 19.

As we have previously reported, US cryptocurrency broker and lender Voyager Digital filed for bankruptcy protection in July. Chapter 11 bankruptcy is sometimes called a “reorganization” bankruptcy, as it allows a firm to retain control of its assets and continue operating while it plans to restructure or sell the business.

It was forced to file for Chapter 11 due to “volatility and contagion” in the market. The main reason is the liquidation of a crypto-focused hedge fund, Three Arrows Capital. The fund defaulted on an almost $700 million loan to Voyager. Voyager’s claims against 3AC still remain with the bankruptcy estate.

Although its chapter 11 filing was “aimed at returning maximum value to customers” and reorganization, Voyager stated the sale to FTX US was the “best alternative for Voyager stakeholders.”

SEE ALSO:

Bank of England urges crypto regulation

When does filing bankruptcy make sense?

DBS opens crypto exchange to high-net-worth clients

Nina Bobro

1405 Posts 0 Comments

https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.