Crypto Exchange FTX to Acquire Assets of Bankrupt Voyager

(Reuters) – Bankrupt crypto lender Voyager Digital said on Monday that crypto exchange FTX had won an auction for its assets, in a bid valued at around $1.42 billion.

FTX’s offer includes a fair market value of all Voyager cryptocurrencies, as of a date to be determined, which is estimated to be $1.31 billion at current market prices and additional consideration estimated to be approximately $111 million of additional value, Voyager said in a statement.

The company added that its claims against hedge fund Three Arrows Capital will remain with the bankruptcy estate, which will distribute any available recovery on those claims to estate creditors.

Voyager issued a notice of default to the Singapore-based hedge fund in June, for its failure to make required payments on a 15,250 bitcoin loan.

Earlier this year, Voyager dismissed a proposed bailout from FTX, founded by billionaire Sam Bankman-Fried, as a “low offer disguised as a white knight bailout” and alleged the plan would disrupt its bankruptcy process.

Crypto lenders, including Voyager, have exploded during the COVID-19 pandemic, luring depositors with high interest rates and easy access to loans rarely offered by traditional banks. However, the collapse of the crypto markets has hurt crypto companies and investors alike.

In its Chapter 11 bankruptcy filing in July, Voyager estimated it had more than 100,000 creditors and between $1 billion and $10 billion in assets, along with liabilities of the same value.

Last week, Voyager said that its chief financial officer, Ashwin Prithipaul, was preparing to leave his role a few months after his appointment at the crypto lender.

(Reporting by Juby Babu and Shubhendu Deshmukh in Bengaluru; Editing by Rashmi Aich)

Copyright 2022 Thomson Reuters.

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