Bankrupt centralized crypto lender Voyager Digital on Tuesday notified the United States Bankruptcy Court for the Southern District of New York of its intention to auction off its remaining assets. The auction is scheduled to take place on September 13 at the Manhattan offices of Digital Voyager investment bank Moelis & Company, with a hearing scheduled for September 29 to approve the outcome. Discounts for the lender’s properties that have already been offered.
Voyagers would like to inform you that a number of bids have been submitted as part of the company’s restructuring process. As a result, the auction is scheduled for September 13. (1/3)
— Voyager (@investvoyager) September 7, 2022
The auction was originally scheduled for August 29. In order for an auction to take place, multiple parties must express interest in acquiring Voyager’s digital assets. On July 22, FTX offered to purchase all of Voyager’s digital assets and digital asset loans except for Three Arrows Capital’s (3AC) loans. That offer was branded “low ball” by the lender and rejected within days.
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Voyager ceased commercial, deposit, withdrawal and loyalty rewards on July 1 and announced on July 5 that it will enter Chapter 11 reorganization, a type of bankruptcy, with more than $1 billion in debt. The company said that customers with cryptocurrency in their accounts will receive “a combination of the crypto in the account (chut), the proceeds from the 3AC recovery, common shares in the newly organized company and the Voyager token.”
Voyager Digital’s bankruptcy comes days after the company filed a default notice and was exploring legal remedies against Three Arrows Capital, which owes 15,250 bitcoins (BTC) and 350 million US dollar coins (USDC). Voyager Digital has confirmed that it will continue to service its customers’ accounts. At that time he also involved Moelis.
In August, a court allowed Voyager Digital to pay “key” employees — which the company says are critical to its continued operations — totaling $1.9 million in bonuses, despite opposition from investors. At the time of writing, Voyager Token was trading at $1.07, up 38.92% in 24 hours.