February 24, 2024

Mergers & Acquisitions

FTX Wins Bid for Voyager Digital’s Assets

FTX US is all set to acquire Voyager Digital’s assets after it has gone bankrupt for $1.422 billion. The auction lasted for two weeks. The FTX US claims Voyager cryptocurrency for a fair market price. The current market price is $1.311 billion and is anticipated to increase further by approximately $111 million.

Voyager states that its claims on 3AC (Three Arrows Capital) will stay with the bankruptcy estate and distribute recoveries to the creditors. The firm previously sent a notice to 3AC for failing to make the necessary payments towards its previous loans of 350 million USDC and 15,250 BTC.

Voyager Digital says that since the filing happened in July for bankruptcy protection, it has engaged itself in a dual-track procedure keeping in mind the standalone reorganization and potential sale options. The company received various bids contemplating reorganization alternatives and sale opportunities through an auction process. The results of the auction determined the sale with FTX. Voyager considered it to be the best for stakeholders.

FTX US’ bid minimizes the duration and maximizes the value to restructure the company. It creates a clear path for the debtors to return the amount to their customers. Voyager Digital states that the FTX US will permit users to store cryptocurrency by trading after the bankruptcy protection case ends. The asset purchase agreement, in this case between the two firms, will be submitted to the United States Bankruptcy Court for approval on 19th October. They will ensure that work is done promptly upon receiving approval to close the transaction.

To keep up with the latest developments in the world of fintech and for more fintech news, please visit https://worldfintechnews.com/.

 

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