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What's The Fate Of FTX's Deal To Purchase Bankrupt Crypto Lender Voyager for $1.4B?

Benzinga · 11/15/2022 15:03

Cryptocurrency lender Voyager Digital Ltd. (OTC:VYGVQ) is attempting to reach an agreement to sell itself to one of the bidders who lost the auction for the insolvent crypto lender after the auction's winner, cryptocurrency exchange FTX, was also compelled to file for bankruptcy.

Among the unsuccessful bidders was the cryptocurrency exchange CrossTower.

FTX Broke Agreement To Buy Voyager, Says Lawyer

According to Joshua Sussberg, the lead bankruptcy attorney for Voyager, FTX broke its agreement to buy the bankrupt company.

Sussberg testified in court on Tuesday that FTX has permitted Voyager to make alternative offers, but has not yet officially announced that it is terminating the agreement to purchase the smaller cryptocurrency company.

“We were shocked, disgruntled, dismayed. There will be no transaction with FTX, I think that is quite obvious,” Bloomberg reported Sussberg as saying during a Voyager bankruptcy hearing.

Also read: BlockFi Set For Possible Bankruptcy As FTX Contagion Deepens: Report

Contagion Factor Continues, According To Joshua Sussberg

Sussberg further stated the ripple effects of FTX’s collapse and the ensuing anxiety continue to simmer in the cryptocurrency market.

During a court hearing held by telephone, attorneys noted that FTX previously won an auction to purchase the assets of Voyager, contingent on the court approving the creditor payment plan.

Voyager's bankruptcy occurred in the midst of a prolonged crypto winter which caused the prices of Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and other major cryptocurrencies to decline substantially from their all-time highs.

About $1.4 billion was the estimated worth of Voyager's sale to FTX, of which $51 million was in cash.

FTX would have transferred consumers to its platform had the deal been completed.

Next: Sam Bankman-Fried Claims FTX US Had Enough Funds To Pay All Customers