The End of A Voyag(er)

Last Tuesday, we provided a breakdown of crypto-asset lending platform Voyager filing for bankruptcy. Today, the story moves closer to its conclusion.

• Crypto giants FTX and Binance have spent the last two weeks battling it out for the chance to buy out what remains of Voyager’s assets.
• On the 26th of September, Voyager announced that after multiple rounds of bidding, FTX US’s bid worth around $1.4 billion has officially been accepted.
• The Official Committee of Unsecured Creditors, which represents customers and creditors in the bankruptcy process, “participated actively in the competitive auction and supports FTX US’s winning bid“ according to the statement.
• The bid comprises the fair market value of all Voyagers crypto, which is currently estimated to be $1.311 billion, plus additional considerations valued at $111 million of incremental value.
• In addition, Voyager’s claims against bankrupt fund Three Arrows Capital (3AC) remain with the estate. Any funds recovered from a loan of $650 million to 3AC will be distributed to creditors.

The proposal is subject to court approval processes, including a creditor vote. A hearing is scheduled for the 19th of October at 4 pm EST. If successfully resolved, the acquisition of Voyager could be another feather in the cap of FTX’s growing list of expansions in the face of difficult market conditions.