Crypto firm Voyager heads for bankruptcy auction
Bankrupt cryptocurrency lender Voyager Digital is going up for auction next week.
According to a deposit Tuesday (Sept. 6) with the U.S. Bankruptcy Court for the Southern District of New York auction is scheduled for Sept. 13 at 10 a.m. at the offices of investment bank Voyager’s New York Moelis & Co. The court is expected to hold a hearing on September 29 to approve the results of the sale.
At least 22 parties have reportedly expressed interest in buying Voyager, including Binance and FTX exchanges.
Read more: Today in Crypto: Voyager Seeks Buyers
Voyager filed for Chapter 11 bankruptcy in July, a week after it halted withdrawals and two weeks after receiving a $485 million bailout from Alameda Research from FTX founder Sam Bankman- Fried.
Learn more: Crypto Lender Voyager Seeks Chapter 11 Protection
As PYMNTS reported, Voyager and its subsidiaries Voyager Digital LLC and Voyager Digital Holdings voluntarily filed Chapter 11 to restructure and “create a pathway” to restart operations and “return value to customers.”
At the time of filing, the crypto lender had approximately $1.3 billion in crypto assets on the platform and north of $350 million in cash held in a For Benefit Of (FBO) account for customers. Additionally, Voyager had over $650 million in claims against Singapore-based cryptocurrency hedge fund Three Arrows Capital, which is in liquidation.
“This comprehensive reorganization is the best way to protect platform assets and maximize value for all stakeholders, including customers,” Voyager co-founder and CEO Stephen Ehrlich said in July.
Many recent insolvencies and bankruptcies in the crypto industry – Voyager, Three Arrows, and Celsius among them – are linked, directly or indirectly, to the collapse of the Terra/LUNA stablecoin ecosystem.
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