Voyager customers could get 72% if the bankruptcy sale is successful
Bankrupt crypto lender Voyager could repay customers 72% of their account value if the company can sell itself to digital asset exchange FTX US.
FTX US was able to secure a two-week auction for Voyager under an agreement related to court approval of the creditor payment plan, according to lawyers.
However, Voyager may choose to cancel the deal if they are able to get a higher deal that will pay customers more. U.S. Bankruptcy Judge Michael E. Wiles approved that deal on Wednesday.
Wiles has also urged Voyager for a “fiduciary out”, which is a standard bankruptcy clause. It allows companies under protection from the bank to accept higher offers until a sale is final.
Voyager bankruptcy attorney Christine Okike has told Wiles that FTX is currently the “only viable option” for the company. Nevertheless, they have agreed to change how the trustee is worded to ensure that a better offer can be considered.
According to Voyager, Wiles has been asked to give permission to send the payout plan to creditors and customers for a vote. After that, Wiles has also been asked to approve the sale if the creditors vote in favor.
Voyager’s sale to FTX has been valued at about $1.4 billion, of which $51 million is in cash. Also, as part of the sale, FTX will move customers to its platform.
Under the payout plan, customers who held digital currencies on Voyager’s platform could be paid in that form when FTX takes over if FTX supports that type of currency, lawyers told Wiles.
The purchase has come after several previous attempts by FTX to bail out or buy Voyager, according to Bloomberg.
New York-based Voyager had about 3.5 million users at the end of March and 1.19 million funded accounts.
Voyager filed for bankruptcy protection in July. It did so after a failed attempt by Alameda Research to bail it out with a revolving line of credit. Alameda Research is a trading house affiliated with FTX.
Shortly after that attempt, FTX and Alameda revealed a joint bid for Voyager. However, Voyager called it a “lowball” offer and declined the attempt. In September, Alameda said it would return about $200 million worth of Bitcoin and Ether it had borrowed from Voyager by the end of the month.
Besides Voyager, Bankman-Fried has bought several distressed crypto firms, through which he has acquired customers and valuable technology at a cheaper price.
Bankman-Fried is estimated to own more than 50% of FTX, 70% of FTX US, and almost all of Alameda.
Image source: Shutterstock
