Bitcoin Exchange FTX Wins Bid To Buy Voyager’s Assets For $1.4 Billion
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Cryptolender Voyager has been declared bankrupt and is now selling its assets to FTX.
Things may finally be looking up for crypto lender Voyager after months of trying to stay afloat in the crypto market amidst the massive negative impact of the collapse of the Terra ecosystem. First, Voyager was forced to file for bankruptcy after 3AC (Three Arrows Capital) defaulted on a $670 million debt to a lender.
After filing for Chapter 11 bankruptcy in New York, Voyager’s assets were put up for auction. Several parties competed for the purchase, but it seems that the crypto exchange FTX has emerged as the winner. FTX now plans to buy Voyager’s assets for a total cost of $1.4 billion — the actual value of the assets at $1.3 billion plus an estimated $111 million in appreciation.
Voyager could transfer customers to FTX
In a recent statement, Voyager hinted at the possibility of moving its current customer base to the FTX platform. This may be due to the fact that the lender is no longer functional enough to fulfill its obligations to customers.
Part of the statement read that FTX,
“…allows customers to trade and hold cryptocurrencies after the Company’s Chapter 11 cases are completed.”
The auction agreement will be submitted to a US court for approval on October 19th. The success of the transaction also requires the support of Voyager’s creditors and the fulfillment of other relevant conditions at the closing of the lender.
Will affected users be paid?
Following the settlement with FTX, Voyager users affected by the bankruptcy can now breathe a sigh of relief a possible solution to get their money back. However, it is not yet clear whether the quoted sale price is enough to make them whole again. Either way, they can get something. On the other hand, they are much more popular than the failed Mt.Gox exchange users who went bankrupt in 2014 – they have not yet received compensation.
Please note that Voyager suspended customer deposits and withdrawals on July 2nd. Mark Cuban was a well-known person who was sued for promoting Voyager. On August 24, Voyager filed to drop the lawsuit against its CEO and Mark Cuban.
Sam Bankman-Fried – Crypto Savior?
FTX is a Bitcoin exchange founded by billionaire investor Sam Bankman-Fried. Sam seems to have been on a “shopping spree” since the start of crypto winter 2022. He has since funded a number of crypto-related entities that have experienced operational difficulties when crypto rates collapsed.
In July, FTX gave another lender, BlockFi, a $250 million line of credit amid negotiations to foreclose. Sam is still not ready to buy crypto companies. Apparently, FTX plans to raise another billion dollars for this purpose. Just recently FTX added ink a partnership agreement with Reddit.
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