Troubled crypto lender Voyager Digital was one of the many firms that fell victim to bankruptcy during the bear market.
In response to the bankruptcy, FTX and Alameda Research – both led by Sam Bankman-Fried – made an offer to Voyager to buy out their assets and remaining loans in July.
However, the offer was declined and considered largely opportunistic, with Voyager claiming that it was a “low ball bid” and not “value maximizing” for its customers. If acquired, FTX was planning to open accounts for customers on their exchange in order to distribute funds. But Voyager says that this move would only benefit FTX as it would mean they would be acquiring customers at virtually zero cost.
By holding out, Voyager has now been rewarded with multiple “higher and better” offers than that of FTX’s. In fact, Voyager attorney Joshua Sussberg, says that FTX’s offer is actually the lowest of all received so far though he did not disclose any numbers.
In a Second Day Hearing Presentation in the ongoing bankruptcy case on August 4th, Voyager updated the court that they received “indications of interest from several parties and expect to receive more in the coming days”. More specifically, as many as 88 parties are potentially interested in bailing Voyager out of their financial difficulties, with 22 in active discussion.
Customers of Voyager will also be happy to know that U.S Bankruptcy Court Judge Michael Wiles overseeing the case has given the go-ahead for $270 million to be returned to customers which was originally frozen at the start of the case.
He said that the firm provided “sufficient basis” for its attestation that customers should be allowed to access the custodial account held at the Metropolitan Commercial Bank, which has two accounts opened by Voyager with a total value of $270 million.
