Axios Pro: Fintech Deals

September 07, 2022

Axios Pro Exclusive Content

Happy Wednesday, fintech friends.

Situational awareness: Apple's "Far Out" event is today, and we'll be keeping an eye out for the official launch date of Apple Pay Later, the company's entrance into the "buy now, pay later" market.

1 big thing: Crypto assets for sale, courtesy of Chapter 11

Illustration of a crypto coin with crossed gavels on it.

Illustration: Aïda Amer/Axios

A date has been set for the auction of Voyager Digital assets, Ryan writes. 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.

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