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Following a successful bid to acquire the remaining assets of the bankrupt crypto broker Voyager, crypto exchange FTX.US is offering a recovery plan that would return about 72% of Voyager customer funds, according to a Bloomberg report.
The deal, however, can’t be completed until U.S. Bankruptcy Judge Michael E. Wiles approves Voyager’s bankruptcy payout plan, which reportedly may be considered in December.
Before approving the arrangement, Wiles insisted Voyager should include the so-called “fiduciary out”—a standard bankruptcy clause that allows a company under court protection to consider higher bids before a sale is declared final.
Voyager bankruptcy attorney Christine Okike reportedly told Wiles that FTX.US is providing “the only viable alternative” for the company to recover users’ funds.
The New York-based company also agreed to change how the fiduciary out is worded to ensure a better offer can be considered, while also asking Judge Wiles for permission to share the payout plan with the creditors for a vote.
Should creditors vote in favor of the proposed plan, Wiles would have the final say on whether the plan—as well as the actual sale—can go forward.
"We're excited to receive approval from the bankruptcy court so we can begin working closely with the Voyager team to ensure that funds are made available to customers as soon as legally possible," a spokesperson from FTX.US told Decrypt via email.
FTX wins bid to buy out Voyager
The race to buy out the bankrupt firm saw FTX.US beat out Binance and Wave Financial.
“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,” the company said at the time.
Should the deal go through, FTX would pay $51 million in cash and move Voyager customers over to its platform, with investors eligible to be paid in crypto if they held that type of digital assets supported by FTX.