Binance and FTX Bidding To Acquire Voyager Digital Assets
Mohamed Faisal - TheNewsCrypto
- Early this month, on September 13th, the auction of Voyager Digital assets got underway.
- The company’s total liabilities were $4.9 billion at the time.
Binance and FTX, the two largest cryptocurrency exchanges, are reportedly competing to purchase the assets of defunct cryptocurrency lender Voyager Digital.
Voyager filed for Chapter 11 bankruptcy protection in July 2022 due to severe cash flow problems brought on by the price decline in the cryptocurrency industry. The company’s total liabilities were $4.9 billion at the time. Voyager Digital served as a cryptocurrency lending platform that accepted deposits from customers, returned interest to those depositors, and then leased out the deposited funds to third parties.
Best Time to Acquire
According to WSJ, FTX and Binance have been in a heated bidding war to purchase Voyager’s assets. But at the moment, Binance’s offer is $50 million greater than FTX’s. We all know that FTX has been on a purchasing frenzy this year in search of promising assets.
Early this month, on September 13th, the auction of Voyager Digital assets got underway. In addition to FTX and Binance, other major participants include CrossTower, a trading platform, and Wave Financial, a crypto investment manager.
The successful offer will be revealed during a hearing on September 29 of next week, but the news may come sooner. As previously stated, Voyager Digital filed for bankruptcy in July due to a slew of customer withdrawal demands and platform liquidity problems. Because of Voyager’s over $650 million in exposure to failing hedge fund Three Arrows Capital, the company ran into serious problems. The prolonged winter has forced many crypto firms to announce massive layoffs and even bankruptcy for a few.
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