FTX has won the assets of insolvent crypto platform Voyager Digital at auction. Sam Bankman Fried’s exchange offered $1.422 billion.
As a reminder, the collapse of Project Terra (LUNA/UST) last May had catastrophic consequences within the crypto ecosystem. The exchange platform Voyager Digital had declared itself bankrupt during the summer, and buyout procedures were underway since. We have just learned that it is the FTX US platform that has won the auction.
Indeed, this Tuesday, Voyager Digital reported that the sale of its assets had been subject to numerous bids and that the auction had finally been won by FTX US, the U.S. subsidiary of the crypto exchange FTX. The bid includes the value of the cryptos held by Voyager, estimated at $1.3 billion. But there is also the “additional consideration estimated at approximately $111 million in additional value,” according to the company.
Voyager Digital LLC, selected West Realm Shires Inc (FTX US) as the highest and best offer for its assets,”.
FTX US has offered the sum of $1.422 billion in order to acquire the cryptos held by the exchange, which is estimated to be worth $1.3 billion at current prices. The sale marks the end of an auction process that lasted nearly two weeks.
According to Voyager Digital, FTX US’s offer “maximizes value and minimizes the remaining time to restructure the company by providing the debtors with a clear path to complete a Chapter 11 plan and return value to their customers and other creditors.” The agreement remains subject to U.S. court approval, which can veto the transaction before October 12.
Notably exposed to the defunct crypto hedge fund Three Arrow Capital, the crypto exchange and lending platform had run into trouble last spring before finally filing for bankruptcy in July.
This summer, FTX had offered Voyager Digital’s customers to recover a portion of their balance. The exchange’s lawyers then denounced a “deceptive proposal” that essentially benefited the SBF company.