The ongoing struggle between Binance and FTX over the assets of Voyager Digital will reach a climax on September 29.
In Brief
Voyager Digital is currently finalizing an auction for its assets, which is a key component of its comprehensive restructuring efforts.
The company boasts $5 billion in assets available for sale, aimed at addressing its liabilities that total around $4.9 billion.
The aftermath of this summer’s crypto challenges appears to be coming to a head, fueling hopes for a market transition from bearish to bullish conditions. The latest news from Voyager Digital, a significant player that faced difficulties last season, indicates that they are moving forward. showing up to all its court dates at the beginning of August— unlike Three Arrows Capital The financial struggles facing the firm were exacerbated by its insolvency, leading to a dramatic 95% drop in stock value, ultimately resulting in bankruptcy declaration.
Now, as Voyager Digital nears the end of its asset auction process—part of the broad restructuring plan discussed by CEO Stephen Ehrlich on Twitter this past summer—the company has initiated the sale on September 13 at the Moelis investment bank’s office in midtown Manhattan. Reports indicate that Voyager has $5 billion worth of assets to liquidate in order to offset its liabilities of $4.9 billion. It seems they might scrape by and end up in a better position. Wall Street Journal \"The announcement of the winning bid or bids will take place during a hearing set for September 29, though there is a chance that details could be made public earlier,\" shared a spokesperson for the company with the WSJ.
In this bidding war, Binance and FTX, two major players with a proven track record, are competing intensely. FTX has been particularly aggressive, acquiring various platforms from across multiple jurisdictions as firms seek to exploit weaknesses for market expansion ahead of the approaching bull market. Binance Other contenders in the current Voyager Digital auction comprise crypto investment management firm Wave Financial and a trading platform, with the WSJ noting that a new bidder may also emerge with an alternate offer.
This week, the WSJ reported that Binance is currently ahead in the bidding race, offering approximately $50 million for an unspecified collection of assets, which is said to be marginally higher than FTX's competing bid. According to insiders, Binance's approach toward this bidding skirmish was recently clarified. CrossTower Mentioning its bid, Binance pointed out that \"presently, our offer surpasses FTX's by $50 million,\" suggesting there might have been a misinterpretation in earlier communications.
It seems that Binance subtly depicted its rival in a less favorable light in a recent post. FTX has already been entwined in Voyager's issues; financial documents related to Voyager's bankruptcy reveal that Alameda Research, which is also owned by FTX's Sam Bankman-Fried, had borrowed $377 million worth of crypto when Voyager filed for bankruptcy in July. its own blog post, In June, Alameda provided Voyager with two credit lines: one for $200 million in cash and another for 15,000 bitcoins. This setup meant that Alameda became Voyager’s biggest creditor, holding an unsecured loan of $75 million.
FTX had previously put forth a plan in July proposing to allow Voyager’s customers an option to cash out early, bypassing the prolonged bankruptcy processes. FTX’s rampant growth In a more recent court document filed Monday, it was noted that Alameda agreed to return around $200 million of the borrowed cryptocurrency in exchange for $160 million in collateral that Voyager was managing.
WSJ added that Voyager sold a 9.5% equity stake Contrary to Binance's approach, FTX has not yet released an extensive statement discussing its complex history with Voyager or its current stance in the ongoing auction. However, Bankman-Fried did mention the July proposal regarding customer paybacks, emphasizing that their joint aim was to devise a more effective method for resolving issues within insolvent crypto businesses, allowing customers to access their assets earlier. The Daily Hodl It was previously reported that Voyager dismissed FTX’s buyout proposal in July, labeling it as inadequate. In a traditional auction fashion, they’ve now opened the floor to potential buyers. Stay tuned for updates by September 29.
A bankruptcy court has permitted Voyager's customers to access $270 million in funds.
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Financial Times Vittoria Benzine is a Brooklyn-based writer focused on contemporary art. Her personal essays often delve into themes involving human experiences, counterculture, and chaos magic, with contributions to publications such as Maxim, Hyperallergic, and Brooklyn Magazine.
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