- Moelis & Company, Voyager’s investment bank, would be auctioning off the company’s assets.
- Crypto exchanges Binance and FTX have made the highest bids for the assets of the bankrupt crypto lending firm.
- Approximately each is offering to pay US$50 million for Voyager’s assets.
Last July, Voyager Digital, a high-profile cryptocurrency lender, declared bankruptcy through Chapter 11. Voyager Digital’s bankruptcy was part of a cascading series of events that began with the collapse of Terra UST, market volatility, and the collapse of Three Arrows Capital.
Voyager Digital was a company that, on the surface at least, appeared to be a qualified commercial institution. It was listed on the Toronto Stock Exchange and its CEO, Stephen Ehrlich, had extensive experience in traditional finance.
Voyager’s bankruptcy filing revealed that Three Arrows Capital defaulted on loans totaling 15,250 BTC and 350 million USDC. These represented more than 50% of the company’s loan balance. Additionally, Voyager owed Alameda Research US$75 million.
“While I am a strong believer in this future, the prolonged volatility and contagion in the crypto markets in recent months, and Three Arrows Capital’s default on a loan from the company’s subsidiary, Voyager Digital, LLC, require that we take deliberate and decisive action. action now”, wrote Stephen Ehrlich.
In filing for bankruptcy in July 2022, Voyager Digital claimed to have total assets of $5 billion US dollars and total liabilities of $4.9 billion.
Voyager Digital is auctioning off its assets
A document of the Southern District of New York of the United States Bankruptcy Court reported that on September 13, Moelis & Company, Voyager’s investment bank, would be auctioning off the company’s assets. However, the results of the auction will not be published until September 29 at 2 pm ET.
At the time, Voyager Digital’s lawyers assured that there were approximately 88 interested in the auction.
During a bankruptcy auction, the debtor has the ability to settle their debt by allowing outside parties to bid on their possessions. Why would an external entity want to buy these assets? Because it offers the opportunity to buy high-cost assets at a lower price.
Binance and FTX offer $50 million for the assets
The Wall Street Journal reported that sources familiar with the matter shared that the crypto exchanges Binance Y FTX have made the highest bids for the assets of Voyager Digital.
Approximately each is offering to pay US$50 million for Voyager’s assets. Binance’s offer appears to have been slightly higher than FTX’s.
According to the Wall Street Journal, no offer has been accepted at the moment. However, it is necessary to keep in mind that, according to CoinDeskpeople familiar with the matter noted last week that Binance’s purchase of Voyager’s assets could be complicated by concerns that the US government will reject the transaction.
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