- West Realm Shires, FTX US’s parent company, has won an auction bid for bankrupt lender Voyager’s crypto assets worth approximately $1.4 billion.
- A total of $1.31 billion is taken at the current market rate with the option to be priced at a later date.
The owner and operator of FTX US has purchased assets from the bankrupt crypto lender voyager digital stock in an auction valued at more than $1.4 billion.
The bid by FTX US’s parent company, West Realm Shires, is valued at $1.422 billion, according to a statement issued on Monday.
This includes the fair market value of all of Voyager’s crypto, which will be priced at a later date. The current market value is approximately $1.31 billion.
Following two weeks of a “very competitive” auction procedure, the parent company of FTX US announced that their bid for Voyager’s assets was successful.
Additional consideration will be given to an additional $111 million in incremental value. Its assets will become available once Voyager’s Chapter 11 bankruptcy proceedings are completed.
Blockworks made an effort to get in touch with FTX and Voyager but hasn’t heard back, making it impossible to determine how much in total West Realm Shires spent for the cryptocurrency.
The sale transaction with FTX, according to the company’s statement, is the best option for Voyager stakeholders. “Voyager received various bids exploring sale and restructuring alternatives, held an auction, and based on the results of the auction,” it stated.
According to the statement, Voyager’s claims against the defunct hedge fund Three Arrows Capital would stay with the bankruptcy estate and could be allocated to the estate’s creditors if a recovery is made.
Former Wall Street Journal reporter Liz Hoffman tweeted that the purchase price for FTX’s deal was about $50 million, citing persons familiar with the situation. Hoffman added that if asset under management and other milestone criteria were met, the purchase could wind up costing FTX twice that amount.
Making customers whole
It represents the first big move for users who have been trying to get their money back since voyager digital stock decided to stop allowing deposits, withdrawals, and loyalty awards in July.
Following the market crash in May for cryptocurrencies, which was partly caused by Do Kwon’s Terra ecosystem failing, Voyager became one of the first cryptocurrency businesses to declare bankruptcy.
Alameda Research, a cryptocurrency trading company run by FTX CEO Sam Bankman-Fried, is identified as Voyager’s largest creditor and purportedly holds unsecured loans totaling $75 million.
Prior to now, Bankman-Fried provided early-access liquidity to Voyager customers so they may take their money right away.
Except for the debts made to Three Arrows Capital that were in default, Alameda/FTX offered to purchase all of Voyager’s remaining digital assets and loans.
However, Voyager subsequently rejected that offer, calling it a “low-ball bid masquerading as a white knight rescue,” and stated that it would only consider “serious” approaches.
The public learned about the sale at the start of this month, and it happened on September 13. On October 19, the agreement between Voyager and FTX US will be submitted to the Southern District of New York’s US Bankruptcy Court for approval.