coinculture.com
According to a source, exchange giant FTX takes the lead to acquire the assets of Voyager Digital, the crypto lender whose bankruptcy filing exacerbated this year’s sector crisis. However, more attractive offers might yet emerge in the coming days.
This Thursday, the bankruptcy court staged an auction for Voyager’s assets. The last stage was a duel between Sam Bankman-FTX Fried’s exchange and Wave Financial, a digital-asset investment business.
The bid from FTX was more remarkable, the source noted. Uncertain is the amount that FTX agreed to pay. FTX did not reply quickly to a request for comment, nor did the Wave spokesman.
As reported previously, FTX and Binance sought to buy Voyager. In July, FTX’s offer for Voyager was deemed insufficient and rejected. Wave’s presence among bids has not previously been disclosed. FTX was reportedly soliciting funds in conjunction with a prospective takeover.
Voyager. Image: Justin Sullivan/Getty Images
A purchase for Voyager might bring a reasonably orderly conclusion to one of the most tragic crypto stories of a horrible year.
Voyager prohibited users from withdrawing funds at the start of July after a decline in crypto values. Its clients subsequently became the firm’s creditors in bankruptcy court, where they had to contend with expert restructuring attorneys and bankers as inexperienced participants in a potentially tricky procedure to recover their investment. Unlike an ordinary bank, Voyager’s bankruptcy did not trigger the government-backed deposit insurance that compensates most bank clients in total, which took several Voyager users by surprise.
An acquisition would not conclude the Chapter 11 litigation against Voyager. However, U.S. bankruptcy law allows for the sale of assets so that financially challenged businesses can recover as much money as possible to pay their creditors.