Crypto Lender Voyager Heads to Bankruptcy Auction
Bankrupt cryptocurrency lender Voyager Digital is being put up for auction next week.
According to a filing Tuesday (Sept. 6) with the U.S. Bankruptcy Court of the Southern District of New York, the auction is scheduled for Sept. 13 at 10 a.m. at the offices of Voyager’s New York investment bank Moelis & Co. The court is set to hold a hearing on Sept. 29 to approve the results of the sale.
At least 22 parties had reportedly expressed interest in purchasing Voyager, including the exchanges Binance and FTX.
Read more: Today in Crypto: Voyager Seeks Buyers
Voyager filed for Chapter 11 bankruptcy protection in July, one week after halting withdrawals and two weeks after receiving a $485 million bailout from FTX founder Sam Bankman-Fried’s firm Alameda Research.
Learn more: Crypto Lender Voyager Seeks Chapter 11 Protection
As PYMNTS reported, Voyager and its affiliates Voyager Digital LLC and Voyager Digital Holdings filed Chapter 11 voluntarily to restructure and “create a path” to restart operations and “return value to customers.”
At the time of the filing, the crypto lender had approximately $1.3 billion of crypto assets on the platform and north of $350 million of cash held in a For Benefit Of (FBO) account for customers. In addition, Voyager had more than $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 assets on the platform and maximize value for all stakeholders, including customers,” Voyager Co-founder and CEO Stephen Ehrlich said in July.
Many of the recent insolvencies and bankruptcies in the crypto sector — Voyager, Three Arrows and Celsius among them — are linked, either directly or indirectly, to the collapse of the Terra/LUNA stablecoin ecosystem.
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