Court documents reveal that crypto exchange FTX of Sam Bankman-Fried is currently the highest bidder in a move to buy the assets of Voyager Digital, the crypto lender that filed for bankruptcy in July.
FTX Leads the Race to Buy Voyager Digital
A court document from the US Bankruptcy Court in the Southern District of New York revealed that Moelis (NYSE:) & Company, the investment bank of Voyager Digital, held an auction of the assets of the cryptocurrency lender on Tuesday, September 13.
According to Voyager’s attorneys, there were 88 parties interested in purchasing the assets. Although none of the names of the interested entities have been explicitly released, both FTX and Binance have previously expressed interest in Voyager’s assets.
While it is unclear how high the FTX number shown on Voyager’s assets, the cryptocurrency exchange is said to have outperformed Wave Financial, a digital asset investment firm.
When will customers get their money back?
The sale of assets by Voyager aims to provide liquidity in order to pay its customers, whose funds have been frozen since July 1. According to the court document, the bidding winner will not be revealed until September 29.
The potential repayment of creditors and users whose funds have been restricted is expected to begin after this date. Voyager has also been undergoing a restructuring since filing for Chapter 11 bankruptcy on July 6.
on the flip side
- In July, FTX CEO Sam Bankman-Fried made an offer to acquire Voyager’s assets, but the company rejected the offer, claiming it was a “low-profile” offer.
Why should you care
When the outcome of the auction is announced, Voyager Digital will be in a position to proceed with payments to its creditors, who have been left waiting for months.