
The Assets of Insolvent Cryptocurrency lender Voyager will be Acquired by Cryptocurrency Exchange FTX
- Tech News
- September 29, 2022
- No Comment
- 189
Bankrupt cryptocurrency lender Voyager’s assets will be acquired by cryptocurrency exchange FTX.
On Monday, bankrupt crypto lender Voyager Digital announced that cryptocurrency exchange FTX would acquire its assets. The deal came through a $1.42 billion bid that FTX won in an auction for Voyager’s assets.
The latest development after the bankruptcy of crypto lender Voyager came after several incidents in the crypto market that affected virtually all crypto-related businesses and endeavors. Other cryptocurrency lenders like Celsius also reported filing for bankruptcy during the same period.
In a statement released by Voyager, FTX’s offering includes a fair market valuation for all of its cryptocurrencies on a yet-to-be-determined date (current market price leaves estimate at $1.31 billion) and estimated consideration to be estimates that it will provide about $111 million in incremental value.
Voyager also stated that its claims against hedge fund Three Arrows Capital will remain with the bankruptcy estate, which will distribute any available recovery on those claims to the property’s creditors.
The company’s decision to sell its assets came after it failed to make the required payments on a 15,250 bitcoin loan. It then issues a notice of default to the Singapore-based hedge fund in June. The company also brazenly rejected a rescue offer from FTX from Sam Bankman-Fried. Voyager said that the proposal was “a low profile disguised as saving the white knight”. The company added that this would also have interrupted the bankruptcy process.
In its Chapter 11 bankruptcy filing in July, Voyager estimated that it had more than 100,000 creditors and between $1 billion and $10 billion in assets, plus liabilities of the same value. Voyager also announced last week that its CFO Ashwin Prithipaul was preparing to resign a few months after his appointment as cryptocurrency lender.
The peak period for cryptocurrency lenders like Voyagers was during the Covid-19 pandemic. It has attracted users with high-interest rates on their deposits and ease of access compared to traditional banks for loan applicants. However, this boom was interrupted by events in the cryptocurrency market that caused a drop in the prices of various cryptocurrencies.
Read More News Updates Visit our Site InsightFello.