Binance and FTX Compete to Acquire the Assets of Insolvent Crypto Lender Voyager.

Kutl Ahmedia

The crypto lending company Voyager, which filed bankruptcy earlier this year, is evaluating buyout offers for its assets from other crypto industry participants. Currently, crypto exchanges Binance and FTX are neck-and-neck to outbid each other and acquire Voyager's remaining business. $50 million is the price point around which the bids are rotating (roughly Rs. 400 crore). At the time of writing, Binance's bid was apparently somewhat greater than that of competitor FTX, however the exact statistics are unknown.

Last year, Voyager Digital, a New Jersey-based company with a market capitalization of $3.74 billion (about Rs. 29,791 crore), fell down the corporate ladder following the demise of 3 Arrows Capital (3AC). This was a significant setback for Voyager, which was highly exposed to the hedge fund. The bankrupt corporation has filed claims against 3AC totaling over $650 million (about Rs. 5,194 crores).

Recently, an auction for Voyager's assets took place in New York City. Approximately September 29 will mark the release of the final results. Coindesk indicated that the announcement could be made at a later date.

In July, Voyager Digital flatly rejected FTX and its subsidiary Alameda Research's purchase offer, labeling it a "low-ball deal."

Voyager stated at the time that it would consider "any serious proposal" submitted in accordance with its bidding rules, however the joint offer from Bankman-enterprises Fried's "was geared to generate publicity" rather than deliver value to clients, they noted.

This year, a number of crypto companies have encountered obstacles. Due to a recession-like economic situation and a lack of risk appetite, investors have withdrawn from the crypto market.

Similar to Voyager, cryptocurrency lenders Celsius Network, BlockFi, and Vauld halted withdrawals or declared bankruptcy.


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