FTX US Wins Bid to Acquire Voyager Digital’s Crypto Assets

<p>FTX US, the United States affiliate of the global crypto exchange, won the bid to purchase the digital assets of the bankrupt crypto company, Voyager Digital.</p><p>According to the official press release by <a href="https://www.financemagnates.com/cryptocurrency/news/us-regulators-warn-voyager-for-making-false-claims-of-fidc-protection/" target="_blank">Voyager</a>, the bidding agreement is valued at around $1.42 billion which includes the $1.3 billion in the estimated market prices of the digital assets and an “additional consideration” of $111 million of increment value.</p><p>Customers of Voyager will be able to transfer their assets on the FTX US platform after the conclusion of the distressed company’s Chapter 11 <a href="https://www.financemagnates.com/terms/b/bankruptcy/" target="_blank" id="41b3ef0d-d805-441d-8443-121890264e94_1" class="terms__main-term">bankruptcy</a> process. The companies will now present the purchase agreement for court approval on October 19.</p><p>“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,” the press release stated.</p><p>New York-based Voyager had 3.5 million users at the end of last March and 1.19 million funded accounts, all of whom will now be transferred to FTX US.</p><p>The agreement was made only for customer assets. Voyager’s exposure to Three Arrows Capital will remain with the bankruptcy estate.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">This seems far from ideal. Hard to determine what it means for creditors, but assumption is voyager is finished, customers go to FTX and we all get a fraction of our holdings back – potentially in USD and not coins. Hope I’m wrong. <a href="https://t.co/Q4bdeVklWa">https://t.co/Q4bdeVklWa</a></p>— The Wolf Of All Streets (@scottmelker) <a href="https://twitter.com/scottmelker/status/1574658743207284736?ref_src=twsrc%5Etfw">September 27, 2022</a></blockquote><p>A Lucrative Deal for FTX?</p><p>Voyager was one of the many companies that crumbled over the recent months and filed for bankruptcy protection in July. Sam Bankman-Fried’s interest in the company was prominent as Alameda Research tried to bail out the company with a revolving credit line, but failed.</p><p>FTX and Alameda also made <a href="https://www.financemagnates.com/cryptocurrency/ftx-and-alameda-ventures-propose-to-provide-early-liquidity-to-voyagers-customers/" target="_blank">previous attempts</a> to acquire the digital assets of Voyager but those deals did not materialize. There were also <a href="https://www.financemagnates.com/cryptocurrency/news/voyager-calls-alamada-ftxs-offer-low-ball-bid-bankman-fried-hits-back/" target="_blank">heated arguments between the two parties</a> as Voyager lawyers called the previous offer a “low-ball bid dressed up as a white knight rescue” and Bankman-Fried in response questioned the intentions of bankruptcy agents.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">1) Voyager lost customer assets, but it still has the majority left.Why haven't those been returned to customers yet?Sad facts from a bankruptcy process.</p>— SBF (@SBF_FTX) <a href="https://twitter.com/SBF_FTX/status/1551364656085602305?ref_src=twsrc%5Etfw">July 25, 2022</a></blockquote><p>Bankman-Fried reportedly controls 70 percent of FTX US’ stake, along with more than 50 percent in FTX and eternity of Alameda.</p><p>His companies came out to be beneficiaries of the ongoing crypto winter with the buying out of several distressed companies, which came with millions of customers and valuable technologies at a cheaper price.</p> This article was written by Arnab Shome at www.financemagnates.com.

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