The owner and operator of FTX US has purchased assets from the bankrupt crypto lender Voyager Digital 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.
Extra consideration will be given to an additional $111 million in incremental value. Its assets will become available after Voyager's Chapter 11 bankruptcy proceedings are completed.
“Voyager received various bids contemplating sale and restructuring possibilities, performed an auction, and determined that the sale transaction with FTX is the best solution for Voyager stakeholders based on the outcomes of the auction,” the business said in a statement.
The bankruptcy estate will retain Voyager's claims against the defunct hedge fund Three Arrows Capital, which may be paid to the estate's creditors if a recovery is made, according to the statement.
Former Wall Street Journal reporter Liz Hoffman tweeted that the purchase price for FTX's deal was around $50 million, citing persons familiar with the subject. Hoffman also stated that if assets under management and other milestone criteria are met, the acquisition could end up costing FTX twice as much.
Making customers whole
It is the first big move for consumers who have been trying to reclaim monies held on Voyager's platform since the company decided to suspend withdrawals, deposits, and loyalty awards in July.
Voyager was one of the first cryptocurrency companies to declare bankruptcy after the market crash in May, which was partly caused by the failure of Do Kwon's Terra ecosystem.
Voyager's largest creditor is FTX CEO Sam Bankman-crypto Fried's trading firm Alameda Research, which purportedly holds unsecured debts of $75 million.
Bankman-Fried previously provided early-access liquidity to Voyager customers, allowing them to withdraw cash quickly.
Except for defaulting debts to Three Arrows Capital, Alameda/FTX proposed purchasing Voyager's remaining digital assets and loans.
However, Voyager later rebuffed that offer as a “low-ball bid disguised as a white knight rescue,” stating that it would only consider “serious” approaches.
The auction, which was made public earlier this month, took place on September 13. On October 19, the agreement between Voyager and FTX US will be presented for approval to the United States Bankruptcy Court for the Southern District of New York.