FTX wins bid to buy assets of bankrupt Voyager Digital

• FTX US’ successful bid for Voyager Digital’s is reported at $1.422 billion.
• Voyager says FTX US’ bid provides the best route to returning value to customers.

Cryptocurrency exchange FTX US has won the bid to acquire the assets of bankrupt crypto lender Voyager Digital, according to a press release on Monday.

As per the news update, the winning bid by West Realm Shires (FTX US’s parent company) was $1.422 billion. An estimated $1.311 billion of the bid amount comprises a fair market value of Voyager’s crypto assets- which the announcement noted would be priced at a later date.

There’s also an additional consideration of $111 million in incremental value, while the bankruptcy estate will retain the claims against Three Arrows Capital – which they would be able to distribute upon recovery to creditors.

FTX US provides a clear path for chapter 11 plan

Voyager Digital filed for Chapter 11 bankruptcy in July, after pausing customer withdrawals amid a crypto market contagion triggered by the collapse of Terra Luna and later crypto hedge fund Three Arrows Capital.

“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,” Voyager noted in a statement.

With the auction done, the next step is for the purchase agreement to receive approval from the United States Bankruptcy Court for the Southern District of New York. 

Before the court gets to it on Wednesday, 19 October, 2022, any objection to the deal has a deadline of 12 October, 2022 at 4:00 pm Eastern Time.

The sale will then close following the Bankruptcy Court’s approval, a creditor vote and other relevant closing conditions.