Voyager to Sell Assets to FTX for $1.4 billion
FTX is set to buy Voyager Digital's assets after winning a bankruptcy auction with a bid that was valued at roughly $1.4 billion.
Sam Bankman-Fried, founder and chief executive officer of FTX has again proved himself to be the savior of the crypto world with this lasted deal. Now customers of Voyager Digital may find some solace in the news that FTX, is set to take on the company's assets after the auction. After several rounds of bidding, FTX was selected as the highest bidder for Voyager's assets, the companies said in a statement late Monday. The bid was $1.3 billion for the fair market value of Voyager's digital assets, plus a $111 million "additional consideration" in anticipated incremental value.
For those that were hiding under a rock, Voyager filed for Chapter 11 bankruptcy in July after a drop in digital currency prices which the company unable to redeem withdrawals from its customers. Voyager's demise was in part from the collapse of Three Arrows Capital and the stablecoin terraUSD.
FTX and Bankman-Fried’s are not new to rescues. In fact, they started at the end of last year. FTX provided a $120 million line of credit to Liquid after hackers stole from the Japanese exchange. Then as crypto market faced a liquidity crisis following the crash of the terra and luna tokens they started handing out lines of credits to seemingly any firm that was on the brink of collapse. That work totaled around $750 million. As BlockFi laid off 20% of its staff they were also seeking to raise capital. FTX provided them a $250 million revolving credit line. In July, line was increased to $400 million alongside the option to be acquired by FTX.There are several other stories about how FTX and Bankman-Fried stepped up during hard time. Voyager customers must be feeling better knowing they are in good hands with FTX.
Right now, they have hinted at a possible transition of customers over to FTX. This would be a move that marks a potential step toward compensating users of Voyager. Voyager customers were mislead as they claimed on its website and in marketing materials that users' funds were protected by the Federal Deposit Insurance Corp. This was not true and now all the frozen funds are under question if any will be returned to the original depositors. I believe there is a great opportunity for FTX to do the right thing, increase their customer base, and add stability to an already turbulent market. I'm excited to see how this will play out.
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