Bankruptcy Court Approves FTX Purchase Agreement for Voyager Assets

A U.S. bankruptcy court has given the go-ahead for major crypto exchange FTX to acquire the assets of struggling crypto platform Voyager Digital.

The platform said that the Southern District of New York U.S. Bankruptcy Court has authorized Voyager Digital's “entry into the asset purchase agreement between FTX US and Voyager.”

According to the statement, “FTX US's bid, valued at approximately $1.422 billion, is composed of I the fair market value of all Voyager cryptocurrency at a future date to be determined prior to closing of the sale, which at current market prices as of September 26th is estimated to be $1.311 billion, plus (ii) additional consideration which is estimated to provide approximately $111 million of incremental value to creditors.”

The business stated that Three Arrows Capital's claims against Voyager “will remain with the bankruptcy estate and any recovery on account of the 3AC claims will be available for further distribution to Voyager creditors.”

Following the clearance, Voyager Digital will conduct a customer vote to determine the overall strategy for carrying out the sale to FTX US.

The message states that November 29 is the deadline for voting on the Plan. All creditors eligible to vote on the plan, including customers, will get solicitation packets in the coming days from our claims agent Stretto.

The most recent development occurs almost three months after Voyager Digital rejected a joint offer put forth by FTX and affiliated trading business Alameda, referring to it as a “low-ball bid” that might impede the firm's bankruptcy process.

In a newly filed court document, Voyager's lawyers criticized the offer as “a low-ball proposal disguised as a white knight rescue.”

In an effort to carry out its reorganization plan and “maximize value for all stakeholders,” Voyager Digital filed voluntary applications for protection under Chapter 11 of the United States Bankruptcy Code earlier that month.

The U.S. Federal Deposit Insurance Corporation (FDIC) and the board of the Federal Reserve (FED), America's central bank, issued a joint letter in July demanding that the company stop making what they referred to as “false and misleading statements regarding its FDIC deposit insurance status” and take action to correct such statements. This was another sign that dark clouds were gathering over Voyager Digital.