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September 21, 2022

Crypto Exchange Giants Binance and FTX in Bidding War Over Bankrupt Lender Voyager: Report

By Rhodilee Jean Dolor

Two of the world’s leading crypto exchanges have reportedly submitted their bids to acquire the assets of embattled crypto lender Voyager Digital.

Citing people familiar with the matter, The Wall Street Journal reports that Binance is willing to pay about $50 million to take over Voyager’s properties, which is slightly higher than what FTX bid for.

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Voyager is auctioning the remainder of its assets as part of a restructuring plan after it filed for bankruptcy as a result of the bear market. Its financial woes worsened when crypto hedge fund Three Arrows Capital (3AC), one of its biggest borrowers, defaulted on a $650 million loan.

As Voyager undergoes bankruptcy processes, FTX laid down a proposal in July that would give Voyager customers an option to cash out early without waiting for the conclusion of the proceedings. 

The exchange’s CEO, Sam Bankman-Fried, says his firm’s proposal offers a better option for Voyager to deal with insolvency.

“The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”

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Voyager ultimately refused FTX’s buyout offer, saying that the proposal was a “low-ball” bid that didn’t offer the best value for customers. 

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