A US court is approving the first step of a deal that would see crypto exchange platform FTX purchase the assets of troubled digital asset lender Voyager for over $1.4 billion.
In a new company blog post, Voyager says that a court has approved its entry into a $1.42 billion agreement with FTX that would see the crypto exchange acquire its virtual assets.
FTX’s bid includes the fair market value of all of Voyager’s digital assets as of September 26th, with a combined worth $1.31 billion, as well as $111 million set aside to pay back creditors.
Voyager is now asking customers to vote on its “Plan,” which it says would maximize financial recovery to the crypto lender’s creditors.
“Voyager and its affiliated debtors believe that the sale to FTX US is in the best interest of all stakeholders and, ultimately, is the best possible – and only actionable – transaction available.
As such, Voyager and its affiliated debtors urge you to properly and timely submit your ballot, in advance of the November 29th deadline, with a vote to accept the plan.”
According to Voyager, only customers who successfully transition to FTX will be eligible to receive crypto assets supported by the exchange platform as compensation while those who choose not to will receive cash.
“Value may be returned to customers through a mix of in-kind crypto, USDC [USD Coin], and US dollars, depending on the nature of a customer’s claims, whether and when customers transition to FTX US, and the specific coins supported on the FTX US platform.
Only customers who transition to FTX US will be eligible to receive cryptocurrency as part of their plan distribution – customers who do not transition to FTX US will receive their distributions in cash from the Voyager bankruptcy estates.”
FTX, owned by billionaire Sam Bankman-Fried, beat out fellow crypto exchange platform Binance in a bidding war to purchase the bankrupt crypto lender earlier this month.
Just days ago, it was announced that financial regulators in the state of Texas will be investigating FTX for allegedly selling unregistered securities.
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The post Court Kicks Off $1,422,000,000 Deal Between Bankrupt Crypto Lender Voyager and FTX US appeared first on The Daily Hodl.
