Sam Bankman-Fried’s digital asset exchange, FTX US, won the auction for the assets of bankrupt crypto brokerage Voyager Digital Ltd.
According to a statement released by Voyager Digital on Monday in New York, the agreement is worth roughly $1.4 billion, made up of a “extra consideration” of about $111 million and the $1.3 billion market value of every cryptocurrency held by the insolvent company.
After the bankruptcy process is finished, customers will be able to switch to the FTX US platform, according to Voyager, who also stated that the purchase agreement will be submitted to the court on October 19 for approval.
The acquisition comes after multiple prior attempts by FTX to rescue or buy Voyager. By the end of March, the platform in New York had about 3.5 million users and 1.19 million funded accounts.
After an unsuccessful attempt by Alameda Research, a trading firm connected to FTX, to save Voyager with a revolving line of credit, the company filed for chapter 11 bankruptcy in July.
FTX and Alameda disclosed a joint offer for Voyager in the same month, although Voyager referred to it as a “low-ball” offer. Alameda announced in September that it will pay back the $200 million in Bitcoin and Ether it had borrowed from Voyager by the end of the month.
Bankman-Fried has been aggressively acquiring struggling cryptocurrency businesses this year, snatching up millions of users and priceless technologies for less than they were worth just six months earlier.
Earlier this year, FTX supported the cryptocurrency platform BlockFi and was considering buying out Robinhood Markets Inc. SBF reportedly owns nearly all of Alameda, 70% of FTX US, and more than 50% of FTX.
According to a source familiar with the agreement, which hasn’t closed or been made public, FTX is now in the process of raising a $1 billion funding round.
