According to the latest developments, crypto-currency exchange FTX U.S. has finally outperformed the other players to win the assets of bankrupt crypto-currency lender Voyager Digital. FTX was in a tough race with Binance, with the latter leading last week.
According to Voyager Digital’s statement on Monday, September 26, the deal was valued at about $1.4 billion. This includes $1.3 billion in value of all crypto-currencies currently at Voyager Digital as well as $110 million in “additional consideration“.
At the end of the bankruptcy process, Voyager Digital customers will be able to transfer those assets to the U.S. platform FTX. The troubled crypto lender said it will present the purchase agreement to the court next month, on October 19.
As the crypto market faces huge turbulence this year Sam Bannkman-Fried is released to acquire some good companies in the market. According to sources, FTX is looking to raise an additional $1 billion in funding. However, FTX has not yet confirmed this information.
The fall of Voyager Digital
By the end of March 2022, Voyager Digital had a total of 3.5 million users and nearly 1.19 million funded accounts. Trouble began with the collapse of the Terra ecosystem, which led to a huge drop in the largest hedge fund, Three Arrows Capital. Voyager Digital’s exposure to 3AC as well as large withdrawals led to the crypto-currency lender’s fall.
In July, Voyager Digital finally filed for Chapter 11 bankruptcy protection. Prior to that, Alameda Research – an FTX-affiliated trading house – attempted to acquire Voyager with a revolving line of credit, but the negotiations fell through.
Later, FTX and Alameda Research also made a joint offer for Voyager, but the crypto-currency lender called it a “low-ball“. Earlier in September, Alameda promised to return $200 million in BTC and Ether they had borrowed from Voyager.