Bitcoin News

FTX US prevails in the asset auction for Voyager Digital

According to Voyager Digital, the winning bidder for the assets of the cryptocurrency brokerage company was the cryptocurrency exchange FTX US, with a bid worth roughly $1.4 billion.

Voyager claimed that the bid consisted of the fair market value of its cryptocurrency holdings “at a to-be-determined period in the future,” which is expected to be roughly $1.3 billion, plus $111 million of what it claims is “incremental value,” but did not provide any other information.

Voyager stated that more information about crypto access “would be released as it becomes available,” but no information was provided regarding what will happen to customers who have yet to receive access to their cryptocurrency holdings.

Only the statement that “would enable users to trade and store cryptocurrencies after the end of the company’s chapter 11 cases” was made by Voyager regarding the FTX US platform.

After a chapter 11 plan and asset purchase agreement are submitted for approval by the United States Bankruptcy Court for the Southern District of New York on October 19, the sale of the assets is scheduled to take place.

According to a source, if the bid was successful, Voyager customers would transfer to the FTX platform and receive their pro rata portion of cryptocurrency assets.

On July 5th, Voyager filed for chapter 11 bankruptcy. Chapter 11 bankruptcy, also known as a “reorganization” bankruptcy, enables a company to keep control of its assets and carry on business operations while it plans to restructure or sell the company.

After crypto hedge fund Three Arrows Capital (3AC) defaulted on a $650 million loan from the company, Voyager claims its claims against 3AC remain with the bankruptcy estate. The filing was for an insolvency worth over $1 billion.

The firm claims that the purpose of its chapter 11 filing was “to return maximum value to customers.” It also contemplated a reorganization, but ultimately decided that selling to FTX US was the “best solution for Voyager stakeholders.”

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