Crypto exchange FTX to acquire bankrupt Voyager’s assets

Crypto exchange FTX, whose rescue plan the insolvent institution had earlier this year been rejected, has acquired its assets in a $1.42 billion offer at an auction, according to Voyager Digital on Monday.

According to a statement from Voyager, the FTX offer consists of the fair market value of all Voyager cryptocurrencies at an unspecified future date, which is estimated to be over $1.31 billion at today's market pricing, plus an extra $111 million in additive value.

The business also said that the bankruptcy estate would continue to hold its claims against the hedge fund Three Arrows Capital and would distribute any available proceeds to the estate's creditors.

In June, Voyager sent a notice of default to the Singapore-based hedge firm for missing payments on a 15,250 bitcoin loan.

The business rejected an offer from FTX, the firm established by billionaire Sam Bankman-Fried, in July, calling it a "low-ball bid disguised up as a white knight rescue" that would obstruct its bankruptcy process.

Bankman-Fried has aggressively purchased the assets, technology, and customers of struggling crypto enterprises at low prices in an effort to support businesses in the precarious digital assets industry.

In addition to providing U.S. bitcoin lender BlockFi with a $250 million revolving credit facility in June and a contract granting FTX the ability to buy it depending on certain performance criteria, FTX disclosed in July a 7.6% investment in Robinhood Markets Inc.

During the COVID-19 epidemic, cryptocurrency lenders like Voyager had a surge in business, luring depositors with high interest rates and convenient access to loans that conventional banks seldom ever gave. The decline in the cryptocurrency markets has harmed investors and crypto firms, however.

In its Chapter 11 bankruptcy filing in July, Voyager estimated that company had between $1 billion and $10 billion in assets, as well as liabilities of a similar amount, and more than 100,000 creditors.