Voyager-FTX Deal: Customers Could Recover 72% Pre-Bankruptcy Crypto Assets

Beleaguered crypto lender Voyager Digital on Wednesday received initial approval from the court to sell its assets to crypto exchange FTX for $1.42 billion. If the sale is approved by creditors, customers will recover 72% of crypto assets held before the bankruptcy filing. According to court documents, Voyager account holders or the primary creditors have claims worth $1.76 billion.

Voyager Digital and FTX Receive Initial Approval from Court

Voyager Digital on October 19 received initial approval from the U.S. Bankruptcy Court for the Southern District of New York to sell assets to FTX for $1.42 billion. Thus, allowing Voyager to move ahead and get creditor votes on the proposal.

Bankruptcy Judge Michael Wiles stated that he would approve the sale contract and creditor solicitation materials if Voyager keeps options open for higher and better offers. Moreover, the assets’ sale is not final until creditors approve the proposed sale to FTX.

Crypto exchange FTX won an auction last month to acquire Voyager Digital assets for $1.4 billion. If the sale is approved by creditors, it would allow most Voyager customers to shift accounts on FTX. Therefore, it would enable customers to recover 72% crypto assets they held before the bankruptcy filing. However, the value of those crypto assets have declined since the Chapter 11 bankruptcy filing.

Voyager customers, who are the primary creditors, held claims worth $1.76 billion. It is likely the other reason why the judge sought Voyager to look for better offers. Creditor votes are due by November 29 and final approval is due in a hearing in December.

Meanwhile, Voyager still seeks recovery of their funds from bankrupt crypto hedge fund Three Arrows Capital.

Texas Regulators Investigating FTX and SBF

Texas regulators Texas State Securities Board and the Texas Department of Banking objected the sale of Voyager assets to FTX US. The regulators are currently investigating FTX Trading, FTX US, and its executives including Sam Bankman-Fried for offering unregistered securities to US residents. They believe it is similar to Voyager Digital’s yield-bearing depository accounts.

Meanwhile, FTX has transferred 50K ETH worth nearly $65 million to Voyager Digital’s main wallet. However, it’s unclear whether the transfer is related to the deal. Sam Bankman-Fried has also shown interest in acquiring Celsius assets.