FTX, Binance and CrossTower are competing to buy Voyager Digital assets: Source
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Cryptocurrency exchanges FTX, Binance and CrossTower are vying to acquire the assets of troubled crypto lender Voyager Digital from bankruptcy, according to insiders.
According to information released by former investment banker and angel investor Simon Dixon, the three exchanges are competing in the auction to buy Voyager Digital, and each has proposed its own terms for the acquisition. Details, also posted on Reddit, indicated that FTX and Binance have each proposed around $50 million in cash for the Voyager assets, although Binance’s dollar amount is higher. The cash would go toward “deficiencies and other claims,” the source said.
IF THEY WANT YOU TO TAKE A JOB FOR YOUR CAPITAL TO FILL THE HOLE: https://t.co/ThslVDktYY – LATEST @investvoyager – 3 bidders compete in Voyager’s digital auction with different approaches to platform, upside and cash
— Simon Dixon (Beware of Impersonators) (@SimonDixonTwitt) 22 September 2022
Under these plans, current Voyager customers would receive their proportionate share of crypto assets and be fully migrated to the FTX and Binance platforms.
On the other hand, CrossTower has proposed to retain the current Voyager platform and app, meaning existing customers will not need to migrate to the new platform once the deal is completed. Under this plan, customers would also receive their proportionate share of the assets. According to CrossTower’s acquisition plan, the exchange would also share its revenue with Voyager customers for several years.
Sources who spoke to Dixon also revealed that regulation could play a significant role in winning the auction, as the UK’s Financial Conduct Authority, or FCA, recently warned FTX against operating without a licence. Meanwhile, in the US, the Committee on Foreign Investment may be concerned that Voyager may be bought by Binance due to the national security risk.
Related: Voyager Digital assets to be auctioned on September 13 after being pushed back from August
Voyager Digital filed for Chapter 11 bankruptcy in July, joining a growing number of centralized financial firms that implode during bear markets. At the time, Voyager explained that the Chapter 11 filing was part of a restructuring plan that would eventually clear the way for its customers to access their accounts.