After several trials, rumours, and tribulations, crypto exchange FTX has finally won the Voyager auction, winning over $1.4 billion worth of Voyager Digital's assets.
The crypto lender platform was holding an auction to sell its digital assets to worthy investors in order to compensate its creditors after the recent Voyager bankruptcy.
The platform declared itself bankrupt in July after halting crypto withdrawals and deposits on its platform, citing extreme market conditions.
FTX now owns $1.4 billion worth of Voyager's assets
In an announcement made on Monday, Voyager Digital has finally put a stop to all advancing rumours, adding that crypto exchange FTX has won the auction of its assets.
As per the original statement, after multiple rounds of bidding in a 'highly competitive auction process that lasted two weeks,' Voyager Digital has anointed West Realms Shire LLC, popularly known as FTX US, as the winner of its auctioned assets worth $1.4 billion.
- Read more: Evmos Staking: How to Stake Evmos
FTX US' bid encompassed a fair market value of Voyager Digital cryptocurrency, at a to-be-determined rate, which was anticipated to be at $1.31 billion at current market value, alongside providing $111 million of incremental value.
From the announcement:
FTX US's bid is valued at approximately $1.422 billion, comprised of (i) the fair market value of all Voyager cryptocurrency at a to-be-determined date in the future, which at current market prices is estimated to be $1.311 billion, plus (ii) additional consideration that is estimated as providing approximately $111 million of incremental value.
The statement further added that the company's claims against Three Arrows Capital will remain with the bankruptcy estate, which will distribute any available recovery on such claims.
In addition, the statement outlined that after the conclusion of the company's chapter 11 cases, 'FTX US's market-leading, secure trading platform will enable customers to trade and store cryptocurrency.'
The sale of the assets will resume after the firm's chapter 11 proceedings come to an end, and an asset purchase agreement will also be submitted to secure approval from the United States Bankruptcy Court for the Southern District of New York on October 19 2022.
The tumultuous tug of war between FTX and Voyager Digital has finally come to an end after several tribulations. After filing for bankruptcy in July, Voyager Digital was reportedly approached by FTX concerning the sale of its assets, but the crypto lender platform declined FTX's offer by addressing it as a 'low ball dressed up as a white knight offer.'
It seems FTX US has emerged victorious among several competitors, defeating contenders like Binance and Wave Financials to win the Voyager auction.
Read more about crypto laws and the recent Biden administration crypto framework.