Sam Bankman-Fried's FTX wins bid to buy bankrupt Voyager Digital's assets
According to a statement by Voyager Digital, the bid was valued at approximately $1.42 billion.
Crypto exchange US has secured the winning bid for the assets of bankrupt crypto lender Voyager Digital. According to a statement by Voyager Digital, the bid was valued at approximately $1.42 billion.
The firm also took to Twitter to announce the results of the auction.
In a press release, Voyager said that FTX's bid was made up of a fair market value of its crypto holdings, at a to-be-determined date, which is estimated to be $1.31 billion at current market prices, along with an incremental value of $111 million.
As per the statement, on October 19, the asset purchase agreement will be presented for approval in the United States Bankruptcy Court.
Filing for bankruptcy
Since the collapse of stablecoin TerraUSD, the industry is being battered by snowballing issues.
In June, due to market conditions, the crypto lender halted withdrawals from its platform, limiting customer withdrawals up to $10,000 and up to 20 transactions a day.
The firm had stated that customers could access the money after "a reconciliation and fraud prevention process is completed".
On July 6, Voyager filed for Chapter 11 bankruptcy protection in the Southern District Court of New York. The petition revealed that the firm had more than 100,000 creditors.
At the time, Voyager had explained that the Chapter 11 filing was part of a reorganisation plan that would eventually pave the way for clients to be able to reaccess their accounts. Stephen Ehrlich, CEO of Voyager, said, "This comprehensive reorganisation is the best way to protect assets on the platform and maximise value for all stakeholders, including customers."
FTX emerges as top bidder at the auction
As per multiple media reports, crypto exchanges FTX, Binance and CrossTower were competing to acquire the troubled crypto lender Voyager Digital’s assets out of bankruptcy.
The three exchanges had proposed their own terms and conditions for the acquisition. However, Sam Bankman-Fried's FTX won the bid.
YourStory has not independently verified the reports.
The purchase also follows several attempts by FTX to bail out or acquire Voyager. In August, FTX and its sister company Alameda Research disclosed a joint bid for Voyager, but Voyager called it a “low-ball” offer and the acquisition was turned down.
However, in the past few months, FTX has been snapping deals and acquisitions during the bear market. Numerous firms have suffered during the bear market. This year, FTX and Alameda Research invested in firms that were on the verge of bankruptcy and issued millions of dollars to support the firms.
Edited by Swetha Kannan
