April 17, 2024

FTX Presents Bankrupt Voyager With The Highest Bid On Sales Deal

FTX, a cryptocurrency bourse led by Sam Bankman-Fried, leads an auction competition on Voyager. Voyager Digital Asset Inc. had filed for liquidation two months earlier. Following its filing, several organizations started presenting their bids, of which FTX topped the list. 

Voyager In Trouble

Following the calamity that befell all digital assets on the crypto market in June, several exchanges started calling bankruptcy. One of them was Voyager Digital Asset Inc. The company got affected by unexpected liquidity volatility spurred by high selling pressure.

As a result of the development, it halted withdrawal requests on its platform. Then it slammed Three Arrow Capital for causing its fall by filing for bankruptcy first. At the time of liquidation, it had more than one hundred thousand creditors. 

Voyager claimed it owned over $650 million investment in Three Arrow Capital shortly before its liquidation. TAC owed $10 billion to Voyager and several other investors then. 

Chapter eleven of the US law in Voyager’s case demands the firm to gather sufficient funds to settle its creditors. Also, it must fulfill all its financial obligations, including debts, before shutting down permanently. 

Voyager Up For Sale

With the company now bankrupt, and a ton of creditors breathing down its neck, its only way out was to deal (in). Since it put itself up for sale, over eighty-eight entities have shown interest in it. Each one of these companies has presented Voyager with its best deal. 

Recently, the trustee appointed by the court over Voyager claimed they received 22 bids from various investors some weeks back. FTX institution and Wave Financial were among the list of interested parties. Interestingly, they were the highest bidders with FTX fronting. 

The court set Voyager’s auction for during the week. FTX and Wave beat the battle drums over which company would acquire Voyager at the event. Both firms raced each other on their bids while attempting to outrun each other. 

Meanwhile, Sam became unrelenting as he upped and upped his bid until Wave threw in the towel. FTX put a lid on the auction after the digital asset hedge fund refused to compete further. However, Voyager is yet to sign FTX as its new owner as it looks forward to fresh suitors. 

While Voyager waits for new bids to hop on, it did not disclose how much FTX is willing to pay. Rather than come out with the amount involved in the deal, Sam maintained decorum about it too. Either way, FTX seems not to be bothered as Voyager looks out for new offers. 

Binance and Coinbase also presented offers on Voyager in August. But Coinbase withdrew its bid after scrutinizing the terms. A report revealed that FTX once brought a deal to the table that Voyager refuted on the claim that the amount involved was insufficient.

A lesson from Voyager’s predicament to other crypto firms is to make wise choices while handling other people’s funds.

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