FTX US wins bid for Voyager digital assets

Cryptocurrency exchange FTX US has filed a bid to acquire the assets of crypto brokerage firm Voyager Digital Assets at an estimated value of $1.4 billion.

Voyager said the auction set the fair market value of the crypto holdings at around $1.3 billion at a “date to be determined” and added $111 million in “value added,” but did not provide further details.

While Voyager said more information about access to crypto would be “shared as it becomes available,” little information was given about what will happen to Voyager customers still waiting to receive their crypto holdings.

Voyager mentioned that the FTX US platform “allows clients to trade and store cryptocurrency after the company’s Chapter 11 proceedings are over.

Cointelegraph reached out to FTX and Voyager Digital for further comment, but did not immediately hear back.

The sale of the assets is expected to be completed following a Chapter 11 filing and an asset purchase agreement was submitted for approval in the United States Bankruptcy Court for the Southern District of New York on October 19.

Cointelegraph previously reported that crypto platforms Binance and CrossTower have submitted bids to acquire Voyager’s assets alongside FTX, each offering their own terms.

A source said that Voyager’s clients will receive a pro rata share of the crypto assets, which will be transferred to the FTX platform if the auction is successful.

Related: Sam Bankman-Fried denied the report that FTX plans to buy a stake in Huobi

Voyager filed for Chapter 11 bankruptcy on July 5, sometimes called a “reorganization” bankruptcy, which allows a company to take control of its assets and continue operations while it plans to restructure or sell the business.

After crypto hedge fund Three Arrows Capital (3AC) wrote off a $650 million loan from the firm for more than $1 billion in losses, Voyager’s claim against 3AC is against the bankruptcy estate.

The company said the Chapter 11 filing is “aimed at returning maximum value to customers” and that while it is considered a reorganization, the sale to FTX US is “the best option for Voyager’s stakeholders.”