FTX to Acquire Troubled Crypto Lender Voyager and Save Customers

FTX US, the United States division of global cryptocurrency exchange FTX, has won the bid to purchase the assets of bankrupt crypto lender Voyager Digital. In a press release on Monday evening, Voyager stated that the FTX US bid is valued at approximately $1.42 billion.

Voyager noted that the American crypto exchange was selected as the highest and best bid for its assets after a “highly competitive” auction process. Per reports, other top bidders involved in the auction include crypto exchange Binance, investment manager Wave Financial, and trading platform CrossTower.

FTX’s Bid

According to the announcement, the FTX US bid comprises a fair market value of all Voyager crypto assets at a “to-be-determined” date in the future, which is valued at $1.311 billion at current market prices. The bid also includes additional consideration that provides an estimated incremental value of $111 million.

Voyager also revealed that FTX US “will enable customers to trade and store cryptocurrency after the conclusion of the Company’s chapter 11 cases.”

“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,” Voyager said.

The crypto lending firm mentioned that its claims against now-bankrupt crypto hedge fund Three Arrows Capital (3AC), will remain with the bankruptcy estate, which will distribute any recovery of the claims to the estate’s creditors.

The purchase agreement will be presented to the United States Bankruptcy Court for approval on October 19, according to the announcement.

Voyager filed for Chapter 11 bankruptcy protection in July after suspending withdrawals due to extreme crypto market conditions and its exposure to 3AC. At the time, the crypto lender noted that Chapter 11 is the best way to protect assets on the platform and “maximize value” for its customers.

VGX Surges Following Announcement

Meanwhile, following the announcement of the purchase agreement, Voyager’s native token, VGX, gained more than 2% on the day and was trading at $0.7032 at the time of writing.

The general crypto market is, however, up more than 5% in the last 24 hours, crossing its trillion dollar status again after several weeks of decline.