The deal is finalized at $1.4 billion with the bid from FTX. The sum is derived from the total market value of all assets stored on the Voyager platform and $110 million which is the estimate of corporate value that was stated in the bid and was accepted by auctioneers. FTX decided to purchase the now bankrupt crypto lender and will focus on creating a framework within which to reimburse clients of Voyager.
The only way forward for Voyager Digital
After filing for bankruptcy, the company was left dead in the waters and could not operate. The influx of capital was required and the only way forward was to be auctioned off and sold to a company that can utilize assets and the infrastructure of the lender in a way that would bring back the good reputation of the brand and profits for new investors.
The Official Committee of Unsecured Creditors was the organization that represented customers and creditors of the company during the bankruptcy. The committee issued a statement saying that they support the bid from FTX as the only reputable brand that could push the Voyager platform through the chapter 11 process and provide a solid framework to return funds to customers and creditors.
This whole auction is happening against the backdrop of another big bankruptcy of Three Arrows Capital which received a $650 million loan from Voyager Digital. These funds will be returned to creditors in the nearest future. Other details about assets owned by Voyager and any other liabilities are not yet disclosed and remain confidential according to the rules of the auction.
What will happen to users of the lending platform?
New and old customers will receive an opportunity to create a new account on the FTX exchange and open a balance where they can claim what they are owed by the lender. How exactly the process will be conducted is still a mystery, but Voyager assured its customers that they will share information as soon as possible. The mechanism will be discussed with creditors and through the court approval procedure on October 19.