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Voyager Digital had initially called FTX’s bid a “low-ball” offer, however, the exchange has now won the auction for the troubled lender’s assets.
Earlier, the beleaguered crypto lender Voyager Digital announced that crypto exchange FTX has finally won the auction for its assets. According to the announcement, the bid was sealed in what was worth around $1.4 billion, seeing FTX take over the reins at Voyager’s platform.
Details of the bid reflect the amount of every crypto asset stored on the platform, which is valued at a fair market price of a little above $1.3 billion. The bid also considers an additional $111 million. According to Voyager’s statement, the extra would be a fair estimation of a possible increase in value for those assets. Meanwhile, the summary value of the deal is yet to be made official. This would be subject to prices on a yet-to-be-determined date and would only be communicated thereafter.
FTX Exchange Beats Binance, Others to Bid
The sale signals the end of an auction that lasted nearly two weeks. However, inside sources had claimed that the final three in the bid were FTX, Binance, and CrossTower in no particular order.
While FTX and Binance reportedly submitted closely-related offers for Voyager Digital’s assets, CrossTower was said to have a distinct offer. In fact, CrossTower reportedly considered retaining Voyager’s platform and existing app, striking out the need for any sort of transition.
Nonetheless, Voyager Digital has now decided whose bid is in its platform’s best interest. Part of the statement reads:
“FTX is the best alternative for Voyager stakeholders.”
The statement also mentioned how FTX’s bid shows a clear path on how it hopes to restructure the bankrupt firm and return value to customers and creditors alike. This means that upon its takeover and conclusion of the chapter 11 cases, customers may return to trading and storing crypto on the platform, almost like nothing happened.
Not Yet In The Clear
It is noteworthy that even though FTX has won the bid, its proposal is still subject to court approval processes. The hearing is set to take place on October 19, by 4 pm EST.
Also, the UK’s Financial Conduct Authority (FCA), recently warned FTX about operating without approval. At least, it appears regulation also played a role in why Binance, who was also a frontrunner, lost the Voyager bid.
FTX emerging as the winner of the auction process comes with a little bit of surprise though. After Voyager filed for Chapter 11 bankruptcy in July, it had a run-in with FTX over the exchange’s publicity of its Voyager bid. At the time, Voyager called FTX’s bid a “low-ball” offer. However, it was merely looking to dismiss any ideas about the exchange being a frontrunner in the bid process. According to Voyager, FTX should have been more discretionary by respecting the process.
Nonetheless, FTX has now won and necessary information regarding when customers will regain access to their assets will be shared.