The crypto lender, Voyager Digital announced in July 2022 that it was temporarily suspending its operations, and immediately on July 6 the firm revealed that it will file for Chapter 11 bankruptcy. As per the filing, the company had assets that are worth between $1 billion and $10 billion along with more than 100,000 creditors. The company owed $75 million to FTX CEO Sam Bankman-Fried’s Almeda Research.
Recently, Voyager Digital was part of the auction held at Voyager’s investment banker Moelis & Company, New York. Voyager’s decision to hold an auction suggests that more than one significant offer was made for its assets.
Consumers’ first step in getting their money back from the brokerage’s forum would be to finalize the best buyer. In July, FTX CEO, Sam Bankman-Fried and Binance had made an offer to take over Voyager’s assets, but the company rejected the proposal claiming it was a low-ball bid.
FTX Bids Higher
Among many other firms who have come forward to buy Voyager’s assets, FTX, a popular crypto exchange, is leading the auction. During the final phase, the battle was between FTX exchange and Wave Financial, a digital asset investment firm. Though it’s unclear how much FTX might pay, among all the bidders FTX was the higher.
Wave’s participation wasn’t revealed earlier and it has also been reported that FTX is also planning to raise capital with a possible acquisition. If the Voyager deal is finalized it will put an end to the insolvency story seen in this horrifying year of 2022.
It’s important to know that this purchase deal will not end Voyager’s Chapter 11 case, but it will provide freedom to sell assets so that the companies that are about to get insolvent can raise money to pay to their creditors.
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