As per the most recent developments, cryptocurrency exchange FTX US has ultimately outbid other companies to acquire the digital assets of bankrupt crypto lender Voyager Digital.
Successfully outbid other companies to acquire the assets of bankrupt crypto lender Voyager Digital.
Last week, FTX was in a close battle with crypto exchange Binance.
According to a statement issued by Voyager Digital on Monday, September 26, the agreement is worth around $1.4 billion. This includes the $1.3 billion in value of all cryptocurrencies currently owned by Voyager Digital, as well as an extra $110 million in consideration.
As the bankruptcy process concludes, customers of Voyager Digital will be able to move their assets to the FTX U.S. platform. The troubled cryptocurrency lender stated that acquisition deal would be presented to court on October 19th.
The crypto market experiences significant volatility this year. The FTX CEO Sam Bankman-Fried has been busy acquiring several promising companies. As per sources, FTX is trying to raise an extra $1 billion in the capital. However, FTX is yet to confirm the same.
Fall of Voyager Digital
By the end of March 2022, Voyager Digital had 3.5 million users and over 1.19 million funded accounts. The trouble started with the collapse of the Terra ecosystem, which resulted in the bankruptcy of the largest hedge fund, Three Arrows Capital. Voyager Digital's exposure to 3AC, along with large withdrawals, led to the crypto lender's collapse.
In July, Voyager Digital eventually filed for Chapter 11 bankruptcy. Earlier, Alameda Research, a trading firm affiliated with FTX, attempted to purchase Voyager using a revolving credit line, however, the efforts failed.
Later, FTX and Alameda Research made a joint proposal for Voyager, but the crypto lender referred to it as a "low-ball" impact. Earlier last month, Alameda agreed to refund $200 million in BTC and Ether borrowed from Voyager.
As per Coin Gabbar, the chances of Voyager Digital's acquisition by FTX US comes at a time when the broader cryptocurrency market signals a bearish trend. Before filing for bankruptcy, Voyager Digital has a significant user base in the United States. This might influence and profit the FTX US to expand its user base even stronger. For more such updates, keep following Coin Gabbar.