Bankruptcy Court Approves FTX Purchase Agreement for Voyager Assets

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Jaroslaw Adamowski

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Jaroslaw Adamowski

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June 26, 2023 06:55 EDT

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Major crypto exchange FTX has secured the approval of a U.S. bankruptcy court to take over the assets of troubled crypto platform Voyager Digital. 

In a statement, the platform said the U.S. Bankruptcy Court for the Southern District of New York decided to approve Voyager Digital’s “entry into the asset purchase agreement between FTX US and Voyager.”

“FTX US’s bid, valued at approximately $1.422 billion, is comprised of (i) the fair market value of all Voyager cryptocurrency at a to-be-determined future date 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,” according to the statement. 

“Voyager’s claims against Three Arrows Capital will remain with the bankruptcy estate, and any recovery on account of the 3AC claims will be available for additional distribution to Voyager creditors,” the company said. 

Following the approval, Voyager Digital is to move forward with a customer vote on the broader plan via which the sale to FTX US will be carried out. 

“The deadline to vote on the Plan is November 29,” according to the statement. “In the coming days, our claims agent Stretto will send solicitation packets to all creditors entitled to vote on the plan, including customers.”

The latest development comes roughly three months after Voyager Digital dismissed a joint offer proposed by FTX and linked trading firm Alameda, calling it a “low-ball bid” that could disrupt the firm’s bankruptcy process.

“It’s a low-ball bid dressed up as a white knight rescue,” Voyager’s lawyers said in response to the bid in a recently submitted court filing.

Earlier that month, Voyager Digital submitted voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code as it sought to carry out its reorganization plan and “maximize value for all stakeholders.”

Last July, in another sign of dark clouds gathering over Voyager Digital, 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 which they demanded that the firm cease and desist from making what they described as “false and misleading statements regarding its FDIC deposit insurance status” and take action to correct such statements.