- Binance has joined the battle for Voyager Digital’s assets
- What’s left of the bankrupt exchange is being auctioned off
- FTX has already had a bid rejected, labelled as a PR stunt
Binance has joined FTX in bidding for the assets of Voyager Digital, the Toronto-based exchange that filed for bankruptcy in September. The Wall Street Journal says that the world’s biggest crypto exchange has tabled a bid near FTX’s $50 million, which is a far cry from the $3.9 billion at which Voyager was valued at the height of the bull market last year. FTX’s initial bid in July was rejected by Voyager, so they will have welcomed a second bid from a rival which could help them negotiate better terms.
Voyager’s Return to Earth
Voyager was one of the headline casualties from the crypto contagion that began with the Terra collapse and continues to impact the crypto space to this day. The failure of Three Arrows Capital left Voyager with a more than $650 million hole in its side, leading to the exchange halting withdrawals and deposits in June. Discussions over a rescue package failed, leaving a sale of its remaining assets the only option open to it.
FTX made an offer for Voyager in late July but this was rejected by Voyager, who called it nothing more than a PR stunt “designed to generate publicity for itself rather than value for Voyager’s customers” and did not have the interests of Voyager or its customers at heart. Until now however this had remained the only offer on the table, although with Binance now reportedly interested, FTX might be tempted to improve its offer.
Winner Will be Announced Within a Week
The bids are part of an auction of Voyager’s assets that began on September 13th. Other bidders involved include crypto investment manager Wave Financial and trading platform CrossTower, with other as yet unknown bidders not ruled out.
A hearing is scheduled in New York on September 29th where the winning bid will be announced, but the Wall Street Journal says an announcement could come sooner if it is a particularly good offer.