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FTX Has Won the Auction for the Bankrupt Crypto Lender Voyager

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Voyager Digital reported today that FTX won the auction for bankrupt lender Voyager Digital and its assets with an offer of roughly $1.4 billion.

The proposal reflects the more than $1.3 billion in fair market value of cryptocurrency kept on Voyager’s platform, while the actual amount of the transaction will be established by pricing on a later date. According to the business, the bid also contains “extra consideration that is projected to provide approximately $111 million of incremental value.”¬†

According to the statement, the Official Committee of Unsecured Creditors, which represents consumers and creditors in the bankruptcy process, “participated actively in the competitive auction and supports FTX US’s winning bid.”

“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,” said the statement. “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 estate retains Voyager’s rights against insolvent fund Three Arrows Capital (3AC), and any monies recovered from a $650 million loan to 3AC would be dispersed to creditors.

The transaction concludes a roughly two-week auction process in which FTX and Binance were apparently frontrunners. Voyager received numerous offers for sale and reorganization alternatives and concluded that “FTX is the best alternative for Voyager stakeholders,” according to a statement issued today.

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Voyager filed for Chapter 11 bankruptcy protection in July of this year and has since worked its way through the proceedings. FTX and sibling company Alameda clashed with Voyager after they made their proposal for the platform public. Voyager said the two connected companies violated the bid procedure’s secrecy requirements and sought to remove any sense that FTX was a frontrunner early in the process, labelling their offer a “low-ball” bid.

According to that initial strategy, Voyager customers would have been able to register a new account with FTX and get an opening balance for their claim. The conditions of the now-accepted bid, however, are not yet known. In a statement, Voyager promised to share more details as they become available regarding the timetable for customer access to cryptocurrency.