The Voyager Digital auction is over — now what?

by · September 30, 2022

Voyager Digital filed for Chapter 11 bankruptcy in July after its exposure to toxic Three Arrows Capital led to its eventual downfall. This week, rumblings of a Voyager Digital auction emerged, and Cointelegraph broke the story on the afternoon of September 26 after a reputable source confirmed the parties involved. A few hours later, a winner was announced: crypto exchange FTX US. However, not everyone is convinced that Voyager’s depositors will be taken care of.

This week’s Crypto Biz chronicles the bidders involved in the Voyager Digital auction. It also documents the resignation of a disgruntled crypto chief and major funding plans from a blockchain-focused hedge fund.

FTX US wins auction for Voyager Digital assets

Cointelegraph reported this week that crypto exchanges FTX, Binance and CrossTower were competing to acquire the assets of beleaguered crypto lender Voyager Digital. A few hours later, it was confirmed that FTX US had secured the winning bid of around $1.3 billion. The acquisition means existing Voyager users can access funds through FTX US once the crypto lender’s Chapter 11 case closes. Voyager is just one of several distressed crypto firms that have imploded during this year’s bear market. Its fate was tied to the disastrous collapse of Three Arrows Capital, which failed to repay $650 million to its lender.

Voyage’s auction did not serve the best interests of depositors, claims Wave Financial representative

FTX US may have won the auction for Voyager’s assets, but the outcome did not serve the best interests of depositors, according to a Wave Financial representative. In an exclusive interview with Cointelegraph, the representative of the Los Angeles-based asset management firm confirmed that Wave was also involved in purchasing Voyager’s assets. They argued that Wave’s proposal was better because it sought to “restore value in the VGX token via new and improved tools, save $200 million in funds and redistribute assets back to existing Voyager customers.” What’s done is done, but Wave certainly made a compelling offer.

Pantera plans to raise $1.25 billion for other blockchain funds: Report

Crypto-focused hedge fund Pantera Capital remains extremely bullish on digital assets. According to CEO Dan Morehead, the company is “very bullish on the next 10 or 20 years” and is prepared to put its money where its mouth is. The company revealed this week that it plans to raise a whopping $1.25 billion for its second blockchain fund. If all goes according to plan, the fund will reach its goal by May 2023. If you’re committed to Bitcoin (BTC) and digital assets, as Morehead is, the next six to 12 months are sure to test your resolve.

Celsius CEO Alex Mashinsky resigns

The faster they rise, the harder they fall. Celsius Network — once the darling of the centralized financial industry, with over $20 billion in assets at its peak — filed for bankruptcy in July. Its CEO, Alex Mashinsky, officially relinquished his role on September 27. While Mashinsky has attempted to revive the company through restructuring, he claims his presence has served as a “distraction” more than anything else. “I regret that my continued role as CEO has become an increasing distraction, and I am deeply sorry for the difficult financial circumstances facing members of our community,” he said in a news release.

Before You Go: What Impact Will the Collapsing British Pound Have on Crypto?

The British pound plunged this week to its lowest level ever against the US dollar. Investors in the crypto space are confused as to why the British pound sold off so strongly. They are even more curious about what this could mean for Bitcoin and digital assets as a whole. In this week’s market report, Cointelegraph analysts dissected the pound’s apparent fall from grace and how this could affect investor sentiment going forward. You can watch the full replay below.

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