Voyager Digital, a bankrupt centralized cryptocurrency lender, notified the bankruptcy court in the Southern District of New York on Tuesday that it will hold an auction for its remaining assets. Voyager Digital will auction off its remaining assets on September 13 as part of the Chapter 11 bankruptcy procedure. The asset auction for Voyager will take place in New York at Moelis & Company, the company’s investment bankers.
Voyagers, we want to let you know that multiple bids were submitted as part of the company’s restructuring process. As a result, an auction is scheduled for September 13th. (1/3)
— Voyager (@investvoyager) September 7, 2022
According to a court document filed on September 7, the deadline for submitting bids was September 6. The sale of the Voyager will not be finalized until the court grants permission, which is expected on September 29. Voyager’s business attorneys reported early in August that at least 22 investors had expressed interest in the company’s assets offer. However, the attorney’s presentation did not disclose the number of formal bids received before the deadline.
FTX and Binance to Compete for Voyager’s Assets
FTX and Binance, two major cryptocurrency firms, have expressed interest in competing for Voyager’s assets. In a recent interview with the New York Times, Changpeng Zhao, CEO of Binance, confirmed the rumors. He said Celsius Network and Voyager, two insolvent cryptocurrency lenders, approached him about selling their holdings. Zhao claims that the Binance team is involved in all of these discussions.
After Voyager filed for Chapter 11 bankruptcy, the cryptocurrency trading platform FTX revealed its joint proposal with West Realm Shires. Voyager customers will be able to open new accounts on FTX due to a joint proposal from FTX and the US company West Realm. Sam Bankman-Fried, the CEO of FTX, is also the manager of West Realm Shires’ venture capital firm Alameda Ventures.
Coinbase, a cryptocurrency exchange, was also considered because of the possibility of a partnership with Callaway Capital Management, a Washington, DC-based firm. According to reports, the US-based exchange dropped its proposal after determining that the financials did not add up. Coinbase and Callaway both declined to comment on the rumor.
Investigation on Voyager CEO Stephen Erlich
A charge has been filed against Mark Cuban, owner of the Dallas Mavericks, and Voyager CEO Stephen Erlich for allegedly taking advantage of inexperienced investors. A group of Voyager investors filed a lawsuit against these two men. However, according to the Voyager attorneys, the bankruptcy filing frees the company from pending claims. The attorneys argue that the company’s top executives should have the same protection.
Voyager recently sent a default notice to Three Arrows Capital (3AC) as part of its recovery efforts. Voyager accused Singapore-based cryptocurrency hedge firm 3AC of failing to repay a $670 million loan. According to the notification, Voyager lent 3AC approximately $350 million USDC and 15,250 BTC, totaling roughly $324 million.
We currently have approximately $1.3 billion of crypto assets on our platform, plus claims against Three Arrows Capital of more than $650 million. We also have over $350 million of cash at Metropolitan Commercial Bank. (2/3)
— Voyager (@investvoyager) July 3, 2022
During the auction announcement, Voyager stated that buyers would receive their assets following the conclusion of the auction procedure. Customers must review their Voyager’s list of owned assets. Clients with issues, in particular, must submit their evidence for determination by October 3, 2022.
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