Voyager Assets Acquired by FTX US: What’s Next for Customers?

Big news in the crypto world! Remember Voyager Digital, the crypto brokerage that filed for bankruptcy? Well, they’ve announced a winning bidder for their assets: none other than FTX US, the US arm of the global crypto exchange giant FTX. The deal is estimated to be around a whopping $1.4 billion. Let’s dive into what this acquisition means for Voyager customers and the broader crypto landscape.

Voyager Finds a Buyer: FTX US Takes the Lead

According to Voyager’s official announcement, released recently, FTX US placed the highest bid in an auction for Voyager’s assets. Voyager stated that the bid is composed of two parts:

• The fair market value of Voyager’s crypto holdings, estimated to be around $1.3 billion. It’s important to note that this value will be determined at a future date.
• An additional $111 million described as “incremental value.”

While details are still emerging, this acquisition marks a significant step in Voyager’s bankruptcy proceedings. But what about the users who have been anxiously waiting to access their crypto?

Crypto Access for Voyager Customers: What We Know So Far

The burning question on everyone’s mind is: what happens to Voyager customers and their locked crypto? Voyager has mentioned that “more information about crypto access would be released as it becomes available.” As of now, specific details are still scarce, leaving many users in suspense.

However, Voyager did offer a glimmer of hope, stating that the FTX US platform “would enable users to trade and store cryptocurrencies after the end of the company’s chapter 11 cases.” This suggests that the plan is to eventually allow Voyager customers to access their assets through the FTX US platform.

Key Dates and Next Steps in the Voyager-FTX Deal

The acquisition isn’t finalized just yet. Here’s a timeline of what needs to happen next:

• Court Approval: Voyager needs to submit a chapter 11 plan and an asset purchase agreement to the United States Bankruptcy Court for the Southern District of New York.
• Hearing Date: This submission is scheduled for October 19th.
• Sale Completion: If the court approves the plan, the sale of Voyager’s assets to FTX US can proceed.

According to sources familiar with the matter, the intended outcome is for Voyager customers to transition to the FTX platform. Once there, they would reportedly receive their share of cryptocurrency assets on a pro rata basis. This means customers may not receive the exact same amount of crypto they held with Voyager, but rather a portion based on the total assets available for distribution.

Why Did Voyager File for Chapter 11 Bankruptcy?

To understand the significance of this acquisition, let’s rewind a bit. Voyager Digital filed for Chapter 11 bankruptcy on July 5th. Chapter 11 is a form of bankruptcy that allows a company to reorganize its finances while continuing operations. It’s often referred to as “reorganization” bankruptcy. This process gives the company breathing room to restructure its debts or, as in this case, sell assets.

Voyager’s bankruptcy filing was triggered by the default of crypto hedge fund Three Arrows Capital (3AC). 3AC failed to repay a substantial $650 million loan from Voyager. This default, coupled with broader market turmoil in the crypto space, led to Voyager’s insolvency, estimated to be over $1 billion.

Voyager’s Goal: Returning Value to Customers

Throughout the bankruptcy process, Voyager has consistently stated that its primary goal is “to return maximum value to customers.” While reorganization was considered, selling to FTX US was ultimately deemed the “best solution for Voyager stakeholders.” This acquisition offers a potential path for Voyager customers to recover at least a portion of their locked crypto assets, which is a positive development in a challenging situation.

What Does This Mean for the Crypto Market?

The Voyager-FTX deal has broader implications for the crypto market:

• Consolidation: This acquisition could signal a trend of consolidation in the crypto industry. Stronger players like FTX are stepping in to acquire distressed assets, potentially leading to a more concentrated market.
• Confidence Boost (Potentially): The fact that a major exchange like FTX is willing to invest in Voyager’s assets could be seen as a sign of confidence in the long-term prospects of the crypto market, even amidst current challenges.
• Regulatory Scrutiny: High-profile events like Voyager’s bankruptcy and subsequent acquisition will likely draw increased regulatory attention to the crypto industry. Regulators may look to implement stricter rules to protect consumers and ensure market stability.

Looking Ahead: What Voyager Customers Should Do

For Voyager customers, the situation is still unfolding. Here’s what you should consider doing:

• Stay Informed: Keep a close eye on official announcements from Voyager Digital and FTX. Monitor Voyager’s bankruptcy case filings for updates.
• Manage Expectations: Understand that the recovery process may take time, and the amount of crypto recovered might be less than originally held.
• Prepare for Transition: If the deal is approved, be ready to potentially transition to the FTX US platform. Familiarize yourself with FTX US’s services and account setup process.

In Conclusion: A Step Forward for Voyager and its Users

The acquisition of Voyager Digital’s assets by FTX US represents a significant development in the Voyager bankruptcy saga. While many details are still pending, it offers a potential pathway for Voyager customers to regain access to their crypto holdings. The deal also highlights the evolving landscape of the crypto market, with consolidation and resilience emerging as key themes. As the process moves forward, staying informed and managing expectations will be crucial for Voyager customers navigating this transition. The crypto world is watching closely to see how this acquisition unfolds and what it signals for the future of digital asset exchanges and user protection.