Crypto exchange FTX to acquire bankrupt Voyager assets

Crypto exchange FTX to acquire bankrupt Voyager assets

(Reuters) – Cryptocurrency exchange FTX, which rejected a bailout proposal from the bankrupt lender earlier this year, said Voyager Digital said on Monday that its assets are in an auction of $1.42 billion.

Voyager said in a statement that the FTX offering includes the fair market value of all Voyager cryptocurrencies, at a date to be determined, pegged at approximately $1.31 billion at current market prices and an additional $111 million in additional value.

The company added that its claims against hedge fund Three Arrows Capital will remain with the bankruptcy estate, which will distribute any recovery available on those claims to the property’s creditors.

Voyager issued a default notice to a Singapore hedge fund in June, for failing to make required payments on a 15,250 bitcoin loan.

The company in July rejected a proposal from FTX, founded by billionaire Sam Bankman-Fried, as a “low-key offer dressed as the White Knight Rescue” and claimed the plan would stymie the bankruptcy process.

Bankman-Fried has been throwing a lifeline to support companies in the shaky digital asset sector, aggressively acquiring assets, technology, and clients of distressed crypto firms at cheap valuations.

FTX in July disclosed a 7.6% stake in Robinhood Markets Inc (NASDAQ): US crypto lender BlockFi handed over a $250 million revolving credit facility in June along with a deal giving FTX the right to buy it based on certain performance triggers.

Cryptocurrency lenders including Voyager have thrived during the COVID-19 pandemic, attracting depositors with high interest rates and easy access to loans that traditional banks rarely offer. However, the recession in the crypto markets has hurt crypto companies and investors.

In its Chapter 11 bankruptcy filing in July, Voyager estimated it had more than 100,000 creditors and between $1 billion and $10 billion in assets, plus liabilities of the same value.

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