Bankrupt crypto lender Voyager Digital said on Monday crypto exchange FTX has won an auction for its assets, in a bid valued at about $1.42 billion.
FTX US, the digital-asset exchange founded by billionaire Sam Bankman Fried, won the auction for the assets of bankrupt crypto brokerage Voyager Digital Ltd.
FTX’s bid comprises of a fair market value of all Voyager cryptocurrency, at a to-be-determined date, which is estimated to be $1.31 billion at current market prices and an additional consideration estimated as providing about $111 million of incremental value, Voyager said in a statement.
Voyager filed for bankruptcy protection in July after a failed attempt by Alameda Research , a trading house affiliated with FTX — to bail it out with a revolving line of credit.
The company added that its claims against hedge fund Three Arrows Capital will remain with the bankruptcy estate, which will distribute any available recovery on such claims to the estate’s creditors.
Voyager issued a notice of default to the Singapore-based hedge fund in June, for its failure to make required payments on a loan of 15,250 bitcoin.
Crypto lenders including Voyager boomed during the COVID-19 pandemic, luring depositors with high interest rates and easy access to loans rarely offered by traditional banks. However, the slump in crypto markets has hurt crypto companies and investors.Follow us on social media