FTX Leading The Bid to Purchase Bankrupt Lender Voyager

FTX voyager purchase

Crypto exchange FTX is leading the bid to buy the assets of Voyager Digital, a bankrupt crypto lender, which filed for bankruptcy in July.

A court document from the US bankruptcy court southern district of New York revealed that an auction was held by Moelis & Company, Voyager’s investment bank, on 13 September for Voyager Digital’s assets. It was highlighted by the final battle between billionaire Sam Bankman-Fried’s FTX exchange and Wave Financial, a digital-asset investment firm.

With 88 interested parties in the auction who have not been officially named, both FTX and Binance have expressed their interest in Voyager’s assets. 

FTX’s hunt for voyager began a while ago when it made an offer for Voyager but was rejected on the grounds of being a “low-ball bid” in July.  Sources also reported that FTX is simultaneously raising capital with a potential acquisition, and is in the stage of evaluating possible takeover candidates.

The purchase would not end Voyager’s Chapter 1 bankruptcy filing. Nevertheless, it provides a leeway to sell assets so Voyager could pay back its creditors.

For many customers of Voyager who lost their life savings with the frozen company, the auction might lead to them getting a slice of their money back. 

The lender suspended customers’ access to their funds and withdrawals on 1 July, and officially declared bankruptcy on July 5. Customers soon became company creditors who had to take a stand in court to get their funds back.

Voyager Digital confused customers that their cash deposits were insured by the Federal Deposit Insurance Corporation (FDIC) through their marketing. At one point, customers assumed that their crypto deposits were also insured. And indeed Voyager did partner with FDIC-insured Metropolitan Commercial Bank but none of Voyager’s customers were protected.

Two agencies in the US supply deposit insurance to depositors in the American depository institutions, namely FDIC and National Credit Union Administration, which is responsible for the compliance and insurance of credit unions.

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