Beleaguered crypto broker Voyager Digital is to auction off assets next week

Bankrupt crypto broker Voyager Digital will auction off its remaining assets next week, a court case confirmed Tuesday.

Bidders hoping to pick up the company’s stake have already submitted offers, after the deadline to do so was extended from August 26 to September 6.

According to the latest filing, a new hearing will then be held on September 29 to approve the outcome of the auction.

The potential buyers remain unnamed at this stage, although Sam Bankman-Fried’s FTX has previously made its own offer publicly known. This was then labeled a “low-ball” bid by Voyager’s lawyers.

About 22 parties were in meaningful discussions to make a bid for Voyager’s assets as of early August, according to the group’s legal team. It is unclear how many of these had submitted their proposals by Tuesday and will proceed to the auction process.

Alongside the sales process, Voyager has been working on returning some money to customers. On August 5, the New York bankruptcy court hearing the case approved a motion for return $270 million to affected customers.

Another $1 billion of the platform’s remaining funds will be distributed through the bankruptcy process.

As part of this process, users have been sent emails showing the types and amount of crypto in their Voyager accounts.

Those who disagree with the registration of their holdings have until 3 October to submit a claim.

Voyager has not responded Decryptits request for comment at press time.

Voyager Digital’s road to bankruptcy

Voyager filed for chapter 11 bankruptcy July 6 this year, with commitments totaling 10 billion dollars. Trading had already been suspended since 1 July.

The firm’s demise came shortly after the failure of crypto hedge fund Three Arrows Capital, to which it had a $661 million exposure.

“The prolonged volatility and contagion in the crypto markets in recent months, and Three Arrows Capital’s default on a loan from its subsidiary, Voyager Digital, LLC, requires us to take deliberate and decisive action now,” Voyager Digital CEO Stephen Ehrlich said in a statement that time.

Additional court documents then showed that Bankman-Fried’s Alameda Research both owed Voyager 377 million dollars and had provided a credit line of 500 million dollars to the company.

Jason Raznick, CEO of media company Benzinga, was later revealed as another of the company’s creditors when he was appointed to unsecured creditors’ committee in the bankruptcy case.