United States-based cryptocurrency exchange FTX.US was approved by the bankruptcy court to enter the asset purchase agreement with the bankrupt crypto lender, Voyager.
According to the official announcement, FTX.US is valued at nearly $1.422 billion. Voyager said it will move forward with a customer vote on the broader recovery plan, which entails the implementation of the sale to the crypto exchange. The voting deadline on the same is scheduled for November 29. The embattled lender said the plan will maximize recoveries to the creditors.
FTX Wins the Bid
Voyager noted that FTX.US was picked as the highest and best bid for its assets after multiple bidding rounds in what it calls a “highly competitive” auction process. The entire process lasted two weeks and witnessed active participation from the Official Committee of Unsecured Creditors (UCC).
The lender added that the winning bid is “significantly better” for customers than its original bid and cited that it would maximize the value returned to customers in the shortest time.
The UCC also supports FTX.US’ winning bid and also believes the plan must be confirmed to ensure that customers receive distributions in the greatest amount. Following the development, FTX CEO Sam Bankman-Fried stated,
“We’re excited and hopeful to receive approval from the bankruptcy court so we can begin working closely with the Voyager team to return the funds to customers as soon as legally possible.”
Recovery Plan
Earlier reports suggested that FTX.US is offering a recovery plan that would return about 72% of Voyager’s customer funds. It is worth noting that the deal, however, cannot be completed until US Bankruptcy Judge Michael E. Wiles grants the bankruptcy payout plan, which is expected as soon as early to mid-December.
“Under the plan, the purchase price of Voyager’s cryptocurrency by FTX US, other than for VGX, will be determined based on a 20-day historical average at a future point in time. Because of this, the pro rata value each customer receives will be impacted by the price of Voyager’s cryptocurrency portfolio during the 20-day reference period, which has not yet been set.”
After the approval of the arrangement, Voyager and FTX.US will move forward with closing the sale and begin the process of returning value to customers via their exchange accounts.
Last month, FTX won an auction for Voyager’s assets estimated at over $1 billion.
The post FTX US Wins Bid to Acquire Bankrupt Lender Voyager’s Assets appeared first on CryptoPotato.