FTX Trumps Binance to Win Voyager Digital Assets
As per the latest development, crypto exchange FTX U.S. has finally outbid other players to win the assets of bankrupt crypto lender Voyager Digital. FTX was in a tough race with crypto exchange Binance as the latter was leading last week.
According to the statement from Voyager Digital on Monday, September 26, the agreement has been valued at about $1.4 billion. This includes $1.3 billion in value of all cryptocurrencies currently with Voyager Digital as well as $110 million of “additional consideration”.
As the bankruptcy process concludes, Voyager Digital customers will be able to transfer these assets to the FTX U.S. platform. The troubled crypto lender said that it will present the purchase agreement to the court next month on October 19.
As the crypto market faces huge turbulence this year, FTX chief Sam Bannkman-Fried has been out acquiring some good companies in the market. As per sources, FTX is looking to raise an additional $1 billion in funds. However, FTX has yet to confirm the same.
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 of funded accounts. The trouble started with the collapse of the Terra ecosystem which led to a huge fall of the biggest hedge fund Three Arrows Capital. The exposure of Voyager Digital to 3AC along with heavy withdrawals led to the fall of the crypto lender.
In July, Voyager Digital ultimately filed for Chapter 11 bankruptcy. Before this, Alameda Research – a trading house affiliated with FTX – tried to acquire Voyager with a revolving credit line, however, the efforts failed.
Later, FTX and Alameda Research also made a joint bid for Voyager, however, the crypto lender called it a “low-ball” effect. Earlier in September, Alameda promised to return $200 million worth of BTC and Ether they borrowed from Voyager.
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