FTX completes final offer to acquire the assets of Voyager Digital

According to the latest development, crypto exchange FTX US has finally outbid other players to win the assets of bankrupt crypto lender Voyager Digital. FTX was in a tough race with crypto exchange Binance as the latter took the lead last week.

According to Voyager Digital’s Monday, September 26 release, the deal was valued at approximately $1.4 billion. This includes $1.3 billion in value of all cryptocurrencies currently with Voyager Digital as well as $110 million in “additional consideration”.

At the end of the bankruptcy process, Voyager Digital customers will be able to transfer these assets to the FTX US platform. The struggling crypto lender said it will present the purchase agreement to court next month, on October 19.

As the crypto market faces huge turbulence this year, FTX chief Sam Bannkman-Fried has acquired some good companies in the market. According to the sources, FTX is looking to raise an additional $1 billion in funds. However, FTX is yet to confirm the same.

The fall of Voyager Digital

By the end of March 2022, Voyager Digital had a total of 3.5 million users and nearly 1.19 million funded accounts. The trouble started with the collapse of the Terra ecosystem which led to a huge downfall of the biggest hedge fund Three Arrows Capital. Voyager Digital’s exposure to 3AC along with large withdrawals led to the crypto lender’s downfall.

In July, Voyager Digital finally filed for Chapter 11 bankruptcy. Prior to that, Alameda Research – an FTX-affiliated trading house – attempted to acquire Voyager with a revolving line of credit, but the effort failed.

Later, FTX and Alameda Research also made a joint bid for Voyager, however, the crypto lender called it a “low-ball” effect. Earlier in September, Alameda promised to return $200 million worth of BTC and Ether that they borrowed from Voyager.

Bhushan is a FinTech enthusiast and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrency. He is continually in a learning process and motivates himself by sharing his acquired knowledge. In his spare time, he reads thrillers and occasionally explores his cooking skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

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