Bankrupt centralized cryptocurrency lender Voyager Digital filed a notice Tuesday with the United States Bankruptcy Court for the Southern District of New York informing the court of its intention to hold an auction of its remaining assets. The auction is proposed to take place on September 13 at the Manhattan office of Digital Voyager investment banker Moelis & Company, with a hearing to approve the results on September 29. Offers have already been submitted for the lender’s assets.
Voyagers, we want to let you know that multiple bids were submitted as part of the company’s restructuring process. As a result, an auction is scheduled for September 13th. (1/3)
— Voyager (@investvoyager) September 7, 2022
The auction was initially scheduled for August 29. For an auction to take place, multiple parties must show an interest in acquiring Voyager Digital’s assets. On July 22, FTX made an offer to purchase all Voyager Digital assets and digital asset loans, with the exception of loans to Three Arrows Capital (3AC). That offer was labeled a “low ball” by the lender and rejected a few days later.
Voyager suspended trading, deposits, withdrawals, and loyalty rewards on July 1 and announced on July 5 that it was entering Chapter 11 reorganization, a form of bankruptcy, with more than $1 billion in debt. . The company said customers with cryptocurrency in their accounts would receive “a combination of the cryptocurrency in their account(s), proceeds from the 3AC recovery, common stock in the newly reorganized company, and Voyager tokens.”
Voyager Digital’s bankruptcy came days after the company issued a notice of default and was exploring legal remedies against Three Arrows Capital, which owed it 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC). Voyager Digital then assured its customers that it would continue to service their accounts. He also hired Moelis at the time.
In August, the court allowed Voyager Digital to pay “key” employees – those the company said were crucial to continue operating – bonuses totaling $1.9 million, despite investor objections. At the time of writing, the Voyager token was trading at $1.07, up 38.92% in 24 hours.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.