After being declared Bankrupt, crypto lender Voyager is now selling off its assets to FTX.
Things could be finally looking up for crypto lender Voyager after months of struggling to stay afloat in the crypto market amid a huge negative impact that followed the collapse of the Terra ecosystem. For one, Voyager had to file for bankruptcy after 3AC (Three Arrows Capital) defaulted on its $670 million debt to the lender.
After filing for chapter 11 bankruptcy in New York, Voyager’s assets were put up for auction. Various entities competed for the buy, but it appears that the crypto exchange, FTX, has emerged as the winner. FTX is now set to buy off Voyager’s assets at a total cost of $1.4 billion – $1.3 billion as the actual value of the assets, plus $111 million in anticipated value increment.
Voyager Could Transition Its Customers To FTX
In a recent statement, Voyager hinted at the possibility of transitioning its current customer base to the FTX platform. That could be because the lender will no longer be functional enough to fulfill its obligations to the customers.
A section of the statement read that FTX,
“… will enable customers to trade and store cryptocurrency after the conclusion of the Company’s chapter 11 cases.”
The auction deal will be tabled for approval by a US court on October 19th. The deal’s success also requires support from Voyager’s creditors and fulfillment of other relevant conditions as the lender closes down.
Will Affected Users Be Paid?
Following the deal with FTX, Voyager’s users who were affected by the bankruptcy can now breathe a sigh of relief at a possible settlement to get their funds back. However, it’s still not clear whether the quoted selling price will be enough to make them whole again. Either way, they may get something. On the upside, they’re far more favored than the failed Mt.Gox exchange users that went under in 2014 – they’re yet to be compensated.
Recall that Voyager suspended customers’ deposits and withdrawals on July 2nd. Mark Cuban was the well-known personality sued for promoting Voyager. On August 24, Voyager Requested to Stop the Lawsuit Against Its CEO and Mark Cuban.
Sam Bankman-Fried – The Crypto Savior?
FTX is a Bitcoin exchange that billionaire investor Sam Bankman-Fried founded. Sam appears to have been on a “shopping spree” since the crypto winter of 2022 kicked in. He has since funded several crypto-related entities that have experienced operational difficulties amid the crashing crypto prices.
Back in July, FTX gave another lender, BlockFi, a $250 million line of credit amid talks for a buy-out. Sam is still not done acquiring crypto companies. Apparently, FTX is planning to raise a further $1 billion for this purpose. Just recently, FTX inked a partnership deal with Reddit.