FTX US Wins Bid to Acquire Voyager Digital’s Crypto Assets
FTX US, the United States affiliate of the global crypto exchange, won the bid to purchase the digital assets of the bankrupt crypto company, Voyager Digital.According to the official press release by Voyager, the biddin...
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FTX US, the United States affiliate of the global crypto exchange, won the bid to purchase the digital assets of the bankrupt crypto company, Voyager Digital.
According to the official press release by Voyager, the bidding agreement is valued at around $1.42 billion which includes the $1.3 billion in the estimated market prices of the digital assets and an “additional consideration” of $111 million of increment value.
Customers of Voyager will be able to transfer their assets on the FTX US platform after the conclusion of the distressed company’s Chapter 11 bankruptcy process. The companies will now present the purchase agreement for court approval on October 19.
“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,” the press release stated.
New York-based Voyager had 3.5 million users at the end of last March and 1.19 million funded accounts, all of whom will now be transferred to FTX US.
The agreement was made only for customer assets. Voyager’s exposure to Three Arrows Capital will remain with the bankruptcy estate.
This seems far from ideal. Hard to determine what it means for creditors, but assumption is voyager is finished, customers go to FTX and we all get a fraction of our holdings back – potentially in USD and not coins. Hope I’m wrong. https://t.co/Q4bdeVklWa
— The Wolf Of All Streets (@scottmelker) September 27, 2022A Lucrative Deal for FTX?
Voyager was one of the many companies that have crumbled over recent months and filed for bankruptcy protection in July. Sam Bankman-Fried’s interest in the company was prominent as Alameda Research tried to bail out the company with a revolving credit line, but failed.
Additionally, FTX and Alameda made previous attempts to acquire the digital assets of Voyager but those deals did not materialize. Moreover, there were heated arguments between the two parties as Voyager's lawyers called the previous offer a “low-ball bid dressed up as a white knight rescue” and Bankman-Fried in response questioned the intentions of bankruptcy agents.
1) Voyager lost customer assets, but it still has the majority left.Why haven't those been returned to customers yet?Sad facts from a bankruptcy process.
— SBF (@SBF_FTX) July 25, 2022Bankman-Fried reportedly controls 70 percent of FTX US’ stake, along with more than 50 percent in FTX and eternity of Alameda.
His companies came out to be beneficiaries of the ongoing crypto winter with the buying out of several distressed companies, which came with millions of customers and valuable technologies at a cheaper price.
This article was written by Arnab Shome at www.financemagnates.com.Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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