FTX.US Beats Binance to Acquire Defunct Voyager
According to a report published by Bloomberg (1), following a successful bid to acquire the remaining assets of the defunct cryptocurrency broker Voyager, the cryptocurrency exchange FTX.US is now offering a recovery plan that would see customers of Voyager recover approximately 72% of their funds recovered.
However, the transaction cannot be finalized until the bankruptcy payout plan proposed by Voyager is approved by United States Bankruptcy Judge Michael E. Wiles, which is rumored to be a possibility during the month of December.
Wiles insisted that Voyager include the so-called “fiduciary out” before he would approve the arrangement. This standard bankruptcy clause enables a company currently under court protection to consider higher bids before a sale is declared final. Wiles gave his approval for the arrangement.
According to reports, Voyager bankruptcy counsel Christine Okike told Wiles that FTX.US is giving “the only realistic opportunity” for the company to collect the funds of its customers and users.
The firm, which is based in New York, has also agreed to amend the wording of the fiduciary out in order to ensure that a better offer can be considered. In addition, the corporation has requested permission from Judge Wiles to share the compensation plan with the creditors so that they can vote on it.
Wiles would have the last word on whether the planned plan and the actual sale may go forward if the creditors voted in favor of the proposed plan.
FTX Succeeds in Acquiring Voyager
Despite the fact that Voyager initially referred to the offer as “lowball,” the company ultimately decided to accept the $1.4 billion bid from the exchange after filing for Chapter 11 bankruptcy in July.
In the competition to purchase out the failing company, FTX emerged victorious.
FTX.US defeated Binance and Wave Financial in this endeavour.
“Voyager received multiple bids contemplating sale and reorganization alternatives, held an auction, and, based on the results of the auction, has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders,” the company stated at the time. “Based on the results of the auction,” the company continued, “Voyager has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders.”
If the transaction were to go through, FTX would pay $51 million in cash and shift Voyager customers over to its platform. Investors would be eligible for payment in cryptocurrency if they held the type of digital assets that are supported by FTX.