Voyager Digital fell during the winter due to outstanding liquidity issues. As a result, after halting withdrawals on its platform, the company filed for Chapter 11 bankruptcy in July to help it deal with the situation.
The 2022 crypto winter was severe, causing almost all cryptocurrencies to crash. The industry was thrown into crisis as a result of the collapse of the algorithmic Terra and its ecosystem.
Many crypto-related businesses struggled to stay afloat. However, not all of them were able to weather the storm and the effects of the crypto space’s harsh bearish trend.
Then some crypto firms, such as high-interest lending platforms, were drowned. Some of the stopped withdrawals while filing for bankruptcy. Three Arrow Capital was the first to show signs of insolvency (3AC). Its inability to withstand the impact of the bearish trend spread to others.
Voyager Digital, a crypto lending platform, was launched in 2019. Its operations include accepting customer deposits and paying interest on those deposits. In addition, the firm lends the deposited funds to other users. Voyager’s total liabilities were approximately $4.8 billion at the time of its bankruptcy filing.
A recent Wall Street Journal report revealed that Binance and FTX are competing to acquire Voyager’s assets. Unfortunately, the two major cryptocurrency exchanges have declined to assist. Voyager auctioned off its holdings to the public on September 13 this year, as a result of its distressed situation. Some participants have expressed an interest in the assets as a result of this action.
The source claims that Binance outbid FTX by an additional $50 million. Since the beginning of the year, FTX has been on a buying binge in search of potential high-quality assets. The persistent bearish trend in the cryptocurrency market has, however, made the firm distressed as a result of its actions.
Binance and FTX were at the front of the pack in the bidding for Voyager’s assets. However, there are other participants, including Wave Financial, a cryptocurrency investment manager, and CrossTower, a trading platform. The winning bid is anticipated to be revealed on September 29, though it may happen earlier.