Auction date set for Voyager Digital assets
A date has been set for the auction of Voyager Digital assets. According to a court filing, the sale will take place Sept. 13 — about two months after the crypto lender first entered bankruptcy proceedings.
Why it matters: The winning bid could set a precedent for how future crypto bankruptcy reorganizations are structured.
Details: The auction will start next Tuesday at 10am ET, and a hearing to approve the results is set for Sept. 29.
- The deadline for qualified bids, which had been extended after interested parties requested more time, was yesterday.
The intrigue: According to Voyager’s original reorganization plan, customers were promised some combination of crypto, shares in the newly reorganized company, and Voyager tokens.
- But with Voyager's assets going up for auction, it's unclear what customers can expect to recoup once all is said and done.
State of play: Several companies have shown interest in the company's assets, with Voyager previously saying it was in meaningful discussions with at least 22 parties.
- One notable bidder is FTX CEO Sam Bankman-Fried, who made a public offer to bail out Voyager customers through the crypto exchange and his investment firm Alameda Research.
Yes, but: That proposal was rebuffed by Voyager Digital, which called it "a low-ball bid dressed up as a white knight rescue.”
Flashback: Voyager filed for bankruptcy July 6, after suspending all trading, deposits and withdrawals from its platform.
- The firm was one of several counterparties caught up in the collapse of crypto hedge fund Three Arrows Capital (3AC).
- At the time of its bankruptcy filing, Voyager said 3AC owed it more than $650 million, which included an outstanding loan of 15,250 bitcoin and $350 million worth of USDC.