FTX Bids Highest on Buying Voyager's Assets Out of Bankruptcy
Voyager's Bankruptcy
Modified Date:- Published Date:-Categories: Cryptocurrency
FTX Bids Highest onBuying Voyager's Assets Out of Bankruptcy
TheBankruptcy
After acourt order, Voyager Digital’s crypto-lending platform filed forbankruptcy, receiving more than 88 bids from interested institutions. Voyager’slawyers declared that the company was talking with 22 interested parties,including FTX exchange and Wave Financial, an online digital asset hedgefund. As it turns out, Voyager’s highest bidders in the auction were the twoparties mentioned above.
TheAuctioneer War
The Voyagerauction was held earlier this week as per the court ruling. FTX exchangeand Wave Financial raised eyebrows in the auction event by going on afull-scale bidding battle for Voyager’s digital assets. Billionaire SamBankman-Fried’s FTX exchange was unstoppable, bidding the highest bid ofthe two warring institutions. Wave Financial, a digital-asset investment firm,threw a white towel at Bankman’s unshaken request, leaving FTX to ring thebell.
Bankman’s cryptocurrencyexchange may have won the bid; however, higher offers than Sam’s could stillfollow from other interested parties as time goes by. FTX Crypto exchange’sbid was higher, but yet unclear how much Sam Bankman was willing to pay for theauctioned digital assets.
Voyager’sDownfall
After the Cryptomarket crashed in early 2022, Voyager suspended all customer withdrawaltransactions in July. The Crypto-lender blamed market correctionvolatility and Three Arrows Capital’s bankruptcy (TAC) filing as the mainreason for its downfall. Voyager’s bankruptcy digital assets to beauctioned range between $1 billion and $10 billion and more than 100,000accreditors.
The companyopenly declared that it had invested more than $650 million with Three ArrowsCapital, an institution-size hedge fund before TAC filed for bankruptcyearlier this year. Three Arrows Capital owed more than $10 billion to investorsand institutions like Voyager when it filed for bankruptcy.
Voyager’sFinancial Penalties
According toUS Law, ending Voyager’s bankruptcy would not end Voyager’s case, which alignswith chapter 11. The company will only raise a maximum amount of money thatshould be enough to compensate all investors and creditors and settle anyfinancial penalties, including loans that existed in the past, before Voyagerfiled the bankruptcy.
Voyager’sbankruptcy caseindicates that investors and institutions should make prudent financialdecisions when dealing with investor-raised funds. The worrying nature of the cryptocurrencymarkets unveils a shocking outcome to oblivious investors and institutions
The closingdeal for Voyager Capital will end one of the most complicated cryptocurrencyincidents in 2022; the worst year experienced in the cryptocurrency and NFTmarkets.
In its first auction, Voyager Digital’s crypto-lending platform filed for bankruptcy following a court order. The company received more than 88 bids from interested institutions and will end this year one of the most complicated cryptocurrency incidents in 2022. However, it was not just bad luck that affected the NFT market.