These two Top Exchanges In Race for Acquiring Voyager Digital Assets
As per the latest report, the two topmost exchanges Binance and FTX are currently in the race to acquire the assets of bankrupt crypto lender Voyager Digital.
Earlier this year in July 2022, Voyager filed for Chapter 11 bankruptcy after facing major liquidity issues amid the crypto market crash. At that time, the company’s total liabilities stood at $4.9 billion. Started in 2019, Voyager Digital operated as a crypto lending platform that took customer deposits, paid them interest, and lent out the assets to other parties.
People familiar with the matter told WSJ that FTX and Binance have been in a tight race to acquire Voyager’s assets. However, Binance’s bid is currently $50 million higher than that of FTX. As we know, FTX has been on a buying spree this year to acquire potentially good assets but remains distressed due to the market crash.
The auction of Voyager Digital assets began earlier this month on September 13. Although FTX and Binance have been leading, other players such as trading platform CrossTower and crypto investment manager Wave Financial had also participated.
A hearing on September 29 next week shall disclose the winning bid, however, the announcement can come even sooner.
Voyager Digital Distressed Assets
As said, Voyager Digital slipped into bankruptcy in July following heavy withdrawal requests and liquidity issues on the platform. Voyager’s exposure to troubled hedge fund Three Arrows Capital was more than $650 million which led to the major trouble.
Crypto trading firm Alameda Research, owned by FTX chief Sam Bankman-Fried had also borrowed $377 million from Voyager at the time of bankruptcy. But in July’s filing, Voyager Digital had sold a piece of the firm to Alameda Research. Alameda had a 9.5% equity stake in Voyager in June.
Earlier this week on Monday, Alameda said that it is ready to pay $200 million worth of loan it purchased in crypto in exchange for $160 million in collateral.
- Pump.fun Rival Zora Rallies Over 30% Following Robinhood Listing
- Peter Brandt Lists XRP Among Shorts Amid Crypto Market Crash
- Fed’s John Williams Backs More Rate Cuts This Year Amid Labor Market Concerns
- Bitcoin Edges Higher as Fed Chair Jerome Powell Fails to Comment on Monetary Policy
- Flare Network Surpasses $43M in Bridged XRP, Expert Predicts Breakout to New ATH
- Dogecoin Price Outlook as $23M Leaves Exchanges—Is the Parabolic Phase Beginning?
- Pi Network Price Collapses as Analyst Proposes Turnaround Tweaks
- Solana Price Prediction as SOL DAT Company Plans 5% Supply Acquisition—Analyst Targets $1,300 Breakout
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
