5 months ago 2 min read

Following FTX's Bankruptcy, CrossTower Updates New Bid for Voyager's Assets


According to a representative in an interview conducted, cryptocurrency exchange CrossTower is working on a revised offer for the assets of defunct crypto lender Voyager Digital. After FTX US, the first winner of the offer, filed for bankruptcy on November 11 in the US, Voyager announced the reopening of its bidding process. Without specifying a certain amount, the representative stated:

"We are working on a revised offer that we feel will benefit the Voyager customers and the wider Crypto community. CrossTower has always been, and will continue to be, very community-focused."

According to Voyager, FTX US won the bidding war for the assets in September for about $1.4 billion. The sale of the assets would take place following U.S. approval of a chapter 11 plan and an asset purchase agreement. The Southern District of New York bankruptcy court.

The Asset Purchase Agreement between Voyager and FTX US's no-shop clauses are no longer enforceable, according to the statement released by Voyager on November 11. It also stated that the bidding process had been reopened and that the insolvent business was actively speaking with potential bidders.

The spokesman for CrossTower stated that the company is not currently aware of any other bidders.

"We’re not aware of any other interest at the moment, but even if other players enter the ring, CrossTower’s priority is to ensure the best interest of the Voyager customers and the wider crypto community."

As Cointelegraph previously reported, in addition to FTX, Binance and CrossTower also placed offers to purchase the assets of Voyager, each with their own set of terms and conditions.

Customers won't need to move platforms after the purchase is closed thanks to CrossTower's proposal to maintain the current Voyager platform and app. Customers would also receive their proportionate share of the assets under this scheme. Additionally, as part of CrossTower's acquisition strategy, clients of Voyager would receive a portion of the exchange's earnings for a number of years.

A spokeswoman for CrossTower implied that a similar proposal would be in the works, despite the fact that the new bidding terms are unconfirmed:

"Voyager has an incredibly loyal and engaged customer base, and it had a healthy business. We believe that the Voyager foundation can be built upon."

Voyager also acknowledged its exposure to the FTX collapse in the announcement regarding the bidding, noting that it had a balance of about $3 million at FTX, largely made up of locked LUNA2 and locked SRM that it was unable to release since they were still locked and subject to vesting schedules.

Additionally, Voyager asserted that it did not give any assets to FTX in accordance with the selling agreement. A $5 million good faith deposit made by FTX US earlier as part of the auction procedure is being kept in escrow.

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