FTX to Buy Assets of Crypto Lender Voyager Digital
According to one source, giant FTX exchange is taking the lead in acquiring the assets of Voyager Digital, the crypto lender whose bankruptcy filing exacerbated this year’s industry crisis. However, more attractive offers could still emerge in the coming days.
This Thursday, the bankruptcy court organized an auction of Voyager’s assets. The final stage was a duel between the Sam Bankman-FTX Fried exchange and Wave Financial, a digital asset investment firm.
FTX’s offer was more noteworthy, the source noted. The amount FTX has agreed to pay is uncertain. FTX did not respond quickly to a request for comment, nor did Wave’s spokesperson.
As stated earlier, FTX and Binance sought to buy Voyager. In July, FTX’s offer for Voyager was deemed insufficient and rejected. Wave’s presence among the offerings was previously undisclosed. FTX has reportedly solicited funds as part of a potential takeover.
Traveler. Image: Justin Sullivan/Getty Images
A purchase for Voyager could bring a reasonably orderly conclusion to one of crypto’s most tragic stories of a horrible year.
Voyager banned users from withdrawing funds in early July after a drop in crypto values. His clients then became the company’s creditors in bankruptcy court, where they faced expert restructuring lawyers and bankers as inexperienced participants in a potentially tricky process to recover their investment. Unlike a regular bank, Voyager’s failure did not trigger the government-backed deposit insurance that compensates most bank customers in total, which surprised several Voyager users.
An acquisition would not end the Chapter 11 litigation against Voyager. However, US bankruptcy law allows for the sale of assets so that financially troubled businesses can recover as much money as possible to pay their creditors.