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FTX Will Acquire Bankrupt Voyager Digital Assets for $1.4 Billion

Crypto billionaire Sam Bankman-Fried’s FTX exchange has won the auction for the assets of bankrupt digital assets lender Voyager Digital.

FTX made the highest bid which was valued at $1.42 billion according to the Sept. 26 announcement. The auction process lasted two weeks and was “highly competitive,” it added.

The bid comprised the fair market value of all Voyager’s crypto asset holdings at a to-be-determined date in the future. This is estimated to be around $1.31 billion at current market prices. There has also been additional consideration for an estimated incremental value of $111 million.

Voyager’s bankruptcy estate includes claims against Three Arrows Capital (3AC) which will be distributed to creditors on recovery, the announcement stated.

FTX exchange’s crypto expansion

The purchase agreement goes to court for approval on Oct. 19 after which, customers will be able to transfer to the FTX.US exchange.

According to Voyager, the FTX bid “maximizes value and minimizes the remaining duration of the Company’s restructuring.” This is achieved by providing a “clear path forward for the Debtors to consummate a chapter 11 plan and return value to their customers and other creditors,” it added.

SBF’s company has made several attempts to buy out or bail out the embattled Voyager. FTX and Alameda made a joint bid for Voyager in July but it was rejected as a “low-ball” offer.

Voyager Digital suspended trading, deposits, and withdrawals on July 1 blaming 3AC for defaulting on a 15,250 Bitcoin and $350 million USDC loan. Alameda has also borrowed around $200 million in BTC and ETH which it has been ordered to repay by the end of September.

According to Bloomberg, citing a source familiar with the deal, FTX is in the process of raising a $1 billion funding round.

SBF has been aggressively buying up distressed crypto companies during this bear market. According to CrunchBase, Hong
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