Voyager Digital, a bankrupt cryptocurrency lender, announced on Monday that crypto exchange FTX had won an auction for its assets in a deal for around $1.42 billion.
Moreover, the company stated that its claims against the hedge fund Three Arrows Capital would remain with the bankruptcy estate, which would then pay out any available compensation to the estate's creditors.
For failing to make the minimum payments on a loan of 15,250 bitcoin, Voyager sent a notice of default to the Singapore-based hedge firm in June. Voyager rejected a bailout offer from FTX, the company established by billionaire Sam Bankman-Fried, earlier this year, calling it a "low-ball bid dressed up as a white knight rescue" that would obstruct its bankruptcy proceedings.
Voyager stated that it had between $1 billion and $10 billion in assets, as well as liabilities with a similar amount, and over 100,000 creditors when it filed for Chapter 11 bankruptcy in July. After only a few months in the position at the cryptocurrency lender, Voyager stated last week that its Chief Financial Officer Ashwin Prithipaul was getting ready to leave.
In a statement from Voyager, FTX's offer consists of the fair market value of every Voyager coin at an undisclosed time, which is predicted to be $1.31 billion at the current market price, plus an additional consideration that is predicted to add around $111 million in value.
Voyager has been striving to refund some money to clients concurrently with the sale process. On August 5, a proposal to repay $270 million to affected customers was approved by the New York bankruptcy court overseeing the case. The platform will disperse an additional $1 billion of its remaining funds during the bankruptcy process.
Users have received emails outlining the kinds and quantities of cryptocurrency in their Voyager accounts as part of this process. The deadline to lodge a claim for those who disagree with the record of their holdings is Oct. 3.
FTX is a cryptocurrency exchange based in the Bahamas. The Bahamas serves as the company's main office whereas FTX was founded in Antigua and Barbuda. The exchange has over a million customers as of February 2022 and averaged $10 billion in daily trading volume. A different exchange run by FTX for US citizens is called FTX US. Following the earning to give the philosophy of effective altruism, FTX was established with the goal of amassing as much wealth as possible to be used for charitable purposes.
