Digital asset exchange FTX has emerged as the victor in the highly competitive bid for the assets of bankrupt crypto lender Voyager Digital (CSE:VYGR, OTCQX:VYGVF).
FTX’s successful bid places a value of US$1.4bn on the assets, according to Voyager’s statement, providing “a clear path forward for the debtors to consummate a Chapter 11 plan and return value to their customers and other creditors”.
Toronto-listed Voyager Digital Voyager was left exposed to Three Arrows Capital after the hedge fund defaulted on US$650mln worth of loans, forcing Voyager to file for Chapter 11 bankruptcy protection in New York.
The win concludes an acrimonious chapter in FTX’s and Voyager Digital’s relationship.
FTX and Voyager: No love lost
Back in July, FTX in conjunction with sister company Alameda Research – both owned by entrepreneur Sam Bankman-Fried – made a joint buyout offer for Voyager on the caveat that customers would be given access to 75% of their withheld assets.
The offer was slapped down as a “low-ball bid dressed up as a white knight rescue” by Voyager’s lawyers, leading SBF to criticise Voyager for “slowly draining the remaining funds by charging fees every month the bankruptcy process dragged on”.
The following month, SBF wrote off a line of credit extended to Voyager as “US$75mln down the drain”, after proving insufficient as a bailout.
But going by the press release, the firm has since seen sense: “Voyager received multiple bids contemplating sale and reorganisation alternatives, held an auction and, based on the results of the auction, has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders.”
The purchase agreement will be presented before the Bankruptcy Court on October 19.