Bankrupt crypto broker Voyager Digital will be auctioning off its remaining assets next week, a court filing confirmed on Tuesday.
Bidders hoping to snap up the company’s holdings have already submitted offers, after the deadline for doing so was extended to from Auugst 26 to September 6.
Per the newest filing, a further hearing will then be held on September 29 to approve the results of the auction.
The potential buyers remain unnamed at this stage, though Sam Bankman-Fried’s FTX previously made its own offer known publicly. This was then branded a “low-ball” bid by Voyager’s lawyers.
Some 22 parties were in meaningful discussions to place a bid for Voyager’s assets as of early August, according to the group’s legal team. It is unclear how many of these had submitted their proposals by Tuesday and will go through to the auction process.
Alongside the sale process, Voyager has been working to return some money to customers. On August 5, the New York bankruptcy court handling the case approved a proposal to return $270 million to affected customers.
Another $1 billion of the platform’s remaining funds will be distributed through the bankruptcy process.
As part of this process, users have been sent emails listing the types and amounts of crypto in their Voyager accounts.
Those who disagree with the record of their holdings have until October 3 to submit a claim.
Voyager has not responded to Decrypt's request for comment at press time.
Voyager Digital’s road to bankruptcy
Voyager filed for Chapter 11 bankruptcy on July 6 this year, with liabilities of as much as $10 billion. Trading had already been suspended since July 1.
The firm’s demise came shortly after the failure of crypto hedge fund Three Arrows Capital, to which it had a $661 million exposure.
“The prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now,” Voyager Digital’s CEO Stephen Ehrlich said in a statement at the time.
Further court filings then showed that Bankman-Fried’s Alameda Research both owed Voyager $377 million and had extended a $500 million line of credit to the company.
Jason Raznick, CEO of media company Benzinga, was later unveiled as another of the business’s creditors when he was appointed to the unsecured creditor committee in the bankruptcy case.