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Bankrupt Voyager assets to be acquired by crypto exchange FTX

Voyager Digital, a bankrupt crypto lender, announced Monday that crypto exchange FTX had won an auction for its assets. The bid was valued at approximately $1.42 billion.

FTX’s offer consists of a fair value of all Voyager crypto at a date to be determined, which is $1.31 billion at current prices. Voyager also stated in a statement that an additional consideration was estimated to provide about $111 million of incremental worth.

Related: WSJ: A 0.3% decline in assets “could make Tether technically bankrupt.”

The company stated that it will continue to pursue claims against Three Arrows Capital, a hedge fund, and will be subject to bankruptcy estate. It will then distribute any recovery from such claims to creditors.

Voyager sent a notice to default to the Singapore-based hedge funds in June for failing to pay required payments on a loan amount of 15,250 bitcoin.

Voyager rejected a bailout proposal by FTX, founded in part by Sam Bankman-Fried. Voyager claimed that the proposal would disrupt its bankruptcy process.

Voyager, one of the crypto lenders, boomed in the COVID-19 panic. They lured depositors with high interest rate and easy access loans that are not offered by traditional banks. The slump in crypto markets has caused financial losses for investors and crypto companies.

Voyager, in its Chapter 11 bankruptcy filing, in July, estimated that it had more 100,000 creditors, between $1 billion to $10 billion in assets and liabilities, and both of these amounts.

Voyager announced last week that its Chief Financial Officer Ashwin Prithipaul would be stepping down within months of his appointment as crypto lender’s chief financial officer.

Related: Celsius, a cryptocurrency lender based in the United States, has declared bankruptcy.

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