On Monday, cryptocurrency exchange FTX.US won the bid to buy out Voyager Digital, a crypto investment firm that filed for Chapter 11 bankruptcy in July.
Voyager has accepted the exchange’s $1.4 billion bid to be bought out, according to the announcement, beating out Binance and Wave Financial in a race to buy the bankrupted firm.
“Voyager received multiple bids contemplating sale and reorganization alternatives, held an auction, and, based on the auction’s results, has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders,” read the announcement.
Decrypt reached out to FTX US for a statement but didn’t receive a response at the time of press.
To kick off the recovery process after its bankruptcy filing, Voyager opened bidding for companies to buy out Voyager Digital, saying on Twitter in early September that “multiple bids were submitted as part of the company’s restructuring process,” and an auction to acquire Voyager will soon follow.
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
The auction is only the latest in a long and winding road for the troubled crypto firm.
In July, user assets were first frozen, and trading was halted, with Voyager citing “market conditions” at that time. Then, in August, $270 million was released for withdrawals as part of the firm’s bankruptcy filing.
Voyager stated, “The results of the auction do not change the Bar Date nor the need for customers to determine whether to file a claim” and that customers should still file to reclaim their crypto until October 3.
Voyager joins long list of troubled firms
Voyager Digital is not the only crypto firm facing liquidity issues amid the latest bear market.
Crypto lender Celsius, which has fielded rumors of insolvency since 2019, also filed for Chapter 11 bankruptcy in July, claiming that the firm owed $5.5 billion to creditors and clients but was $1.2 billion too short.
Under allegations of “gross mismanagement,” United States Judge Martin Glenn has appointed an independent examiner to further investigate Celsius and its financials.
Another crypto lender based in Singapore, Hodlnaut, also applied and was approved for judicial management to prevent total liquidation. The move also lets the firm organize its restructuring plan, which had left customers unable to withdraw their crypto.
Hodlnaut said that “these actions are taken in what we believe to be in the best interests of our users,” according to an August announcement.