Court Kicks Off $1,422,000,000 Settlement Between Bankruptcy Estate Crypto Lender Voyager and FTX US
According to recent reports, the US court has approved Voyager’s entering into a $1.42 billion deal with FTX to purchase virtual assets.
Crypto lender Voyager Digital filed for Chapter 11 bankruptcy on July 4 after halting withdrawals a few days earlier. According to the company, Three Arrows Capital’s default caused liquidity problems that forced them to take this decision. FTX US therefore submitted a bid to buy the company in a “highly competitive” auction process pending court approval.
According to recent reports, the US court has approved Voyager’s entering into a $1.42 billion deal with FTX to purchase virtual assets. The FTX bid included the fair market value of all of Voyager’s digital assets as of September 26, worth $1.31 billion in addition to a separate $111 million to pay creditors. The company is now asking customers to vote on the plan.
“Voyager and its affiliated debtors believe that the sale to FTX US is in the best interests of all stakeholders and is ultimately the best possible – and only actionable – transaction available,” the company said. “As such, Voyager and its affiliated debtors urge you to properly submit the ballot, in advance of the November 29 deadline, with a vote to accept the plan,” they added.
In order to receive crypto-assets backed by the exchange as compensation, customers must be transferred to the FTX platform. Those who do not will receive cash from the Voyager bankruptcy estates.
“Value can be returned to customers through a mix of in-kind crypto, USDC [USD Coin]and US dollars, depending on the nature of a customer’s requirements, if and when customers migrate to FTX US, and the specific coins supported on the FTX US platform,” Voyager explained.
It was previously reported that FTX.US offers a recovery plan that will return approximately 72% of customers’ funds. However, U.S. Bankruptcy Judge Michael E. Wiles must approve the bankruptcy payment plan, which is expected by mid-December.
Except for VGX, the purchase price of the Voyager cryptos from FTX will be based on a “20-day historical average at a future point in time.” This means that each customer’s pro rata value will be affected by “the price of Voyager’s cryptocurrency portfolio during the 20-day reference period, which has not yet been set.”
The crypto ecosystem has seen some notable exchanges and firms feel the heat of the industry’s winter period, but the likes of FTX continue to facilitate trades and fight against all odds.
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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, author, researcher and a big fan of creative writing. With a financial background, he finds great interest in the invisible factors that cause price changes in everything that is measured by valuation. He has been in the crypto/blockchain space for the past five (5) years. He mostly watches football highlights and movies in his spare time.
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