FTX Wins Bid To Acquire Crypto Assets Of Bankrupt Voyager Digital

Voyager Digital had been one of the worst-hit crypto lenders of the lender crisis that rocked the market back in Q2 2022. After the lender filed for bankruptcy during the height of the crisis, there had been restructuring plans put in place. The crypto lender had then made public that it was looking to sell its assets, and a tug of war had ensued among crypto giants, one of which has now won out against the rest.

FTX Wins Voyager Digital Bid

Crypto exchange FTX had been deadlocked with competitor Binance over taking ownership of the Voyager Digital assets. FTX had put in a $50 million bid for the assets, and Binance had put up a similar bid for the digital assets.

At long last, Voyager Digital had announced that it had accepted FTX’s $50 million bid for its assets. The announcement confirmed that FTX had placed the highest bid, and it had translated to a value of roughly $1.4 billion. This figure encompasses the $1.3 billion that Voyager’s assets are valued at, with an “additional consideration” of $111 million for an increment in the value of the digital assets over time. 

The next phase of the deal will see both parties being presented to the United States Bankruptcy Court for the Southern District of New York on October 19th, 2022, for approval for the transfer of assets from one party to another. However, the deal remains subject to other closing conditions, including a creditor vote.

Crypto total market cap chart from TradingView.com

Total market cap remains below $1 trillion | Source: Crypto Total Market Cap on TradingView.com

FTX taking over the assets of Voyager is expected to help along the company’s restructuring plan that is already in place, as stated in the press release;

“FTX US’s bid maximizes value and minimizes the remaining duration of the Company’s restructuring by providing a clear path forward for the Debtors to consummate a chapter 11 plan and return value to their customers and other creditors. FTX US’s market-leading, secure trading platform will enable customers to trade and store cryptocurrency after the conclusion of the Company’s chapter 11 cases.”

The acceptance of the FTX bid has been one of the most definite moves that were made by the bankrupt crypto lender. However, this does not mean that the case is anywhere close to an end. In fact, this just means that FTX will take over the bankruptcy proceedings of the defunct crypto lender. 

The press release also states that “The sale to FTX US will be consummated pursuant to a chapter 11 plan, which will be subject to a creditor vote and is subject to other customary closing conditions. FTX US and the Company will work to close the transaction promptly following approval of the chapter 11 plan by the Bankruptcy Court.”

Featured image from CryptoSlate, charts from TradingView.com

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