By George Ward
According to multiple reports, the American branch of the largest crypto exchange is planning another bid for the collapsed crypto firm, Voyager, months after losing a bid to acquire the company to FTX’s US subsidiary.
After it lost a $50 million bid to take over the bankrupt crypto lending firm to FTX.US in July, Binance is ready to make another move. With FTX filing for bankruptcy last week, Voyager is open to another round of bids for its facilities.
Aside from Binance, other bidders include Wave Financial and CrossTower. Meanwhile, a spokesperson for CrossTower revealed that the firm is ready to submit an improved bid for Voyager.
Founded in 2019, Voyager became a public trading company through a reverse merger. However, things worsened at the start of the crypto winter forcing the firm to file for bankruptcy in July.
Voyager has more than $650 million in exposure to the now-collapsed Three Arrows Capital (3AC). There is no favorite to acquire the troubled Voyager, and the firm did not move any of its cryptos to the crypto exchange before the latter’s collapse.
However, FTX.US deposited $5 million in “good faith” during the auction; the fund is currently kept in escrow. Furthermore, when the FTX Group submitted its bankruptcy filings, Voyager had a balance of close to $3 million at FTX.
The funds consist of locked-up LUNA2 and SRM, which Voyager could not withdraw due to their being subject to vesting timelines. However, Voyager recovered its loans from Alameda Research, comprising 6.5k BTC and 51k ETH.
According to the firm, it has no outstanding loans with any borrower.
Voyager Customers Can Recover Part Of Frozen Assets
Affected customers of the struggling crypto lending firm may be able to recover some of their frozen funds in a tentative deal with the American arm of FTX. According to the court documents, a U.S. bankruptcy attorney, Michael Wiles, disclosed in the court hearing that the tentative sale is subject to the approval of Voyager’s creditors.
Wiles added that if the deal falls apart, no part of the agreement will remain valid. Moreover, the judge also inserted a “fiduciary out” clause, granting Voyager Digital the option to back out of the deal with FTX should a better offer be presented.
Interestingly, before the collapse of the FTX Group, Voyager hinted at the possibility of transferring its customers to the FTX platform after it emerged as the winner of the bid on September 27.
Furthermore, the tentative deal between FTX and Voyager is to enable the full settlement of all priority claims. It would also allow other account holders to recover at least 72% of the value of their funds, which the company froze since the start of July 2022.