FTX Wins Bid to Buy Crypto Lender Voyager Digital's Assets Out of Bankruptcy
Exchange giant FTX won the bidding war to buy the assets of bankrupt Voyager Digital, Voyager said in a press release late Monday Eastern time. FTX was bidding against Wave Financial, a digital-asset investment firm.
Voyager Token (VGX) rose after the announcement, gaining 3.76% as of 04:17 UTC, trading around 76 U.S. cents.
Crypto lender Voyager Digital filed for bankruptcy in July. Industry observers had been increasing their scrutiny of Voyager’s business practices, particularly how the Canadian-listed firm said in marketing materials that investors' deposits were protected by Federal Deposit Insurance Corporation (FDIC) insurance.
While FDIC insurance would indeed protect bank-held cash deposits up to $250,000, it would not cover cash converted to stablecoins. According to writer Frances Coppola, Voyager’s loan book accounted for nearly half of its total assets, and nearly 60% of that loan book was composed of loans to Three Arrows, which filed for Chapter 15 bankruptcy, also in July.
CoinDesk was first to report on Sept. 16 that FTX was in the lead to buy Voyager's assets.
UPDATE (Sept. 27, 2022, 04:36 UTC): Adds Voyager Token price in second paragraph.