FTX US has clinched the winning bid for the assets of crypto brokerage business Voyager Digital with a bid valued at about $1.4 billion.
The assets will be sold once the U.S. Bankruptcy Court for the Southern District of New York approves a chapter 11 plan and an asset purchase agreement on Oct. 19.
Voyager Digital funds will soon be available under FTX
Voyager claimed that the bid consisted of the fair market value of its cryptocurrency holdings “at a to-be-determined date in the future,” which is expected to be roughly $1.3 billion, plus $111 million of what it claims is “incremental value,” but did not provide any other information.
Voyager stated that more information about crypto access “will be shared as it becomes available.” Still, no details were given regarding what will happen to customers who have yet to receive access to their crypto holdings.
Along with FTX, cryptocurrency platforms Binance and CrossTower also submitted offers to buy Voyager’s assets, each with a different set of conditions.
Restructure plans underway
On July 5, Voyager filed for chapter 11 bankruptcy, often known as a “reorganization” bankruptcy, which allows a company to keep ownership of its assets and continue operations while restructuring or selling the business.
Following the conclusion of the company’s chapter 11 cases, Voyager stated that the FTX US platform would allow consumers to exchange and store cryptocurrencies.
The bankruptcy petition was for a more than $1 billion insolvency after crypto hedge fund Three Arrows Capital (3AC) defaulted on a $650 million loan from the firm. Voyager says its claims against 3AC would be included in the bankruptcy estate.
The company claims that the goal of its Chapter 11 petition was to give customers the most amount of value back. The company also explored a reorganization, but asserted that the sale to FTX US was the “best alternative for Voyager stakeholders.”