During the bankruptcy auction for the cryptocurrency broker, FTX purchased the last of Voyager Digital’s assets for a staggering $1.4 billion.
The offer to take out Voyager Digital, a cryptocurrency investment company that filed for Chapter 11 bankruptcy in July, was won on Monday by cryptocurrency exchange FTX.US.
The release claims that Voyager has accepted the exchange’s $1.4 billion offer to buy it out, defeating rival bidders Wave Financial and Binance in the process.
According to the release, “Voyager received many offers considering sale and reorganization possibilities, performed an auction, and has concluded that the sale transaction with FTX is the best solution for Voyager stakeholders.
FTX US was contacted by Decrypt for a statement, but at the time of publication, no answer had been received.
Voyager Digital announced on Twitter in early September that “several offers were filed as part of the company’s reorganization process,” and an auction to acquire Voyager will shortly follow, to begin the recovery process after its bankruptcy declaration.
The sale is only the most recent step in a difficult journey for the struggling cryptocurrency company.
Voyager originally froze user assets and suspended trading in July, claiming “market circumstances” at the time. Then, in August, as part of the company’s bankruptcy case, $270 million was made available for withdrawals.
The Bar Date and the requirement for clients to decide whether to make a claim remain unchanged, according to Voyager and users should still file to reclaim their cryptocurrency until October 3.
Voyager Digital is not the only cryptocurrency company struggling with liquidity during the most recent bear market.
The cryptocurrency lender Celsius, which has been the subject of bankruptcy rumors since 2019, also filed for Chapter 11 bankruptcy in July, stating that it owed creditors and customers $5.5 billion but was $1.2 billion short.
United States Judge Martin Glenn has authorized an impartial examiner to look at Celsius and its finances further due to claims of “gross mismanagement.”
Hodlnaut, a Singapore-based cryptocurrency lender, also requested and received judicial administration to avert outright collapse. Additionally, the move enables the company to manage its reorganization strategy, which has prevented clients from withdrawing their cryptocurrency.
According to a statement from August, Hodlnaut stated that “these changes are done in what we consider to be in the best interests of our consumers.”
