Court Kicks Off $1,422,000,000 Settlement Between Bankruptcy Estate Crypto Lender Voyager and FTX US
A US court approves the first step in a deal that will see crypto exchange platform FTX buy the assets of troubled digital asset lender Voyager for over $1.4 billion.
In a new company blog post, Voyager says a court has approved a $1.42 billion settlement with FTX that will see the crypto exchange get its virtual assets.
FTX’s bid includes the fair market value of all of Voyager’s digital assets as of Sept. 26, totaling $1.31 billion, as well as $111 million set aside to repay creditors.
Voyager is now asking customers to vote on its “Plan,” which it says will maximize financial recovery for the crypto lender’s creditors.
“Voyager and its affiliated debtors believe that the sale to FTX US is in the best interests of all stakeholders and is ultimately the best possible – and only actionable – transaction available.
As such, Voyager and its affiliated debtors urge you to properly submit your ballot, in advance of the November 29 deadline, with a vote to accept the Plan.”
According to Voyager, only customers who successfully transition to FTX will be eligible to receive cryptoassets backed by the exchange platform as compensation, while those who choose not to do so will receive cash.
“Value can 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 requirements, if and when customers transition to FTX US, and the specific coins supported on the FTX US platform.
Only clients who transition to FTX US will be eligible to receive cryptocurrency as part of their plan distribution – clients who do not transition to FTX US will receive their distributions in cash from the Voyager estates.”
FTX, owned by billionaire Sam Bankman-Fried, beat out fellow crypto exchange Binance in a bidding war to buy the bankrupt crypto lender earlier this month.
Just days ago, it was announced that financial regulators in the state of Texas will investigate FTX for allegedly selling unregistered securities.
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