Bankrupt crypto lender Voyager to sell assets to Sam Bankman-Fried's FTX for $1.4 billion

cnbc.com:

Customers of beleaguered cryptocurrency lender Voyager Digital may find some solace in the news that FTX, the bitcoin exchange founded by billionaire Sam Bankman-Fried, is set to take on the company's assets after winning a bankruptcy auction.

After several rounds of bidding, FTX's U.S. subsidiary was selected as the highest bidder for Voyager's assets, the companies said in a statement late Monday. The bid was valued at roughly $1.4 billion, a figure that includes $1.3 billion for the fair market value of Voyager's digital assets, plus a $111 million «additional consideration» in anticipated incremental value.

Voyager declared Chapter 11 bankruptcy in July after a tumultuous drop in digital currency prices left it unable to redeem withdrawals from its customers. The firm's demise stemmed in part from the collapse of Three Arrows Capital, a so-called hedge fund that took loans from other institutions, like Voyager, to make risky gambles on tokens — including the collapsed stablecoin terraUSD. In June, 3AC defaulted on borrowings from Voyager worth $670 million.

Voyager hinted at a possible transition of its customers over to FTX U.S., saying the exchange «will enable customers to trade and store cryptocurrency after the conclusion of the Company's chapter 11 cases.» The asset purchase deal will be presented to the U.S. Bankruptcy Court for the Southern District of New York for approval on Oct. 19. The sale of Voyager's assets to FTX U.S. is dependent on a vote by creditors, as well as «other customary closing conditions,» according to the statement.

The move marks a potential step toward compensating users of Voyager, who have few legal avenues in getting paid the crypto they stored on the platform before it froze