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Voyager-FTX Deal: Consumers Can Hope For A Recovery Of 72% Pre-Bankruptcy Crypto Assets

Manoj Nair




Ailing crypto lender Voyager Digital obtained permission from the court to sell its assets to crypto exchange FTX for $1.42 billion. If the deal goes through, the consumers will be able to get back 72% of their crypto assets held before the bankruptcy filing. The primary creditors have claims worth $1.76 billion as per court documents.

Voyager-FTX Obtain Preliminary Approval

The preliminary approval for selling assets of FTX for $1.42 billion as a part of the Voyager-FTX deal was received on October 19 from the U.S. Bankruptcy Court for the Southern District of New York. Subsequently, Voyager was able to get creditor votes on the proposal.

Bankruptcy Judge Michael Wiles said that he is open to approving the theVoyager-FTX sale contract and creditor solicitation materials provided Voyager left the door open for higher and better offers. However, it must be noted that the sale cannot proceed unless it gets the nod of the creditors.

It must be noted that Crypto exchange FTX acquired Voyager Digital assets for $1.4 billion in an auction. If the sale gets the nod of the investors, it will enable most Voyager customers to shift accounts on FTX. It will also enable the customers to recover 72% crypto assets they held before the bankruptcy filing. On the downside, the values of these crypto assets have declined since the Chapter 11 bankruptcy filing.

The Voyager customers are the primary creditors and had invested $1.76 billion of their hard-owned money and this is one of the reasons why the judge sought Voyager to look for better offers. Creditor votes are due by November 29 and final approval is due in a hearing in December.

Texas Regulators Investigating Voyager-FTX Deal

Texas regulators Texas State Securities Board along with Texas Department of Banking had strongly demurred the sale of Voyager assets to FTX US. The regulators have also opened an investigation to find if Sam Bankman-Fried and other executives had offered unregistered securities to US residents, something which the regulators believe is similar to Voyager Digital’s yield-bearing depository accounts.

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