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US based cryptocurrency exchange FTX.US was approved by the bankruptcy court to enter the asset purchase agreement with the bankrupt crypto lender, Voyager.

In accordance to the official announcement, FTX.US is valued at nearly $1.422 billion.

Voyager said it proceed with a customer vote on the broader recovery plan, which entails the implementation of the sale to the crypto exchange.

The voting deadline is, however, scheduled for November 29.

The shattered lender revealed that the plan will maximize recoveries to the creditors.

Voyager disclosed that FTX.US won the highest and best bid for its assets after multiple bidding rounds in what it calls a “highly competitive” auction process.

The entire auction process lasted two weeks and received active participation from the Official Committee of Unsecured Creditors (UCC).

Voyager added that the winning bid is “significantly better” for customers than its original bid and claimed that it would maximize the value returned to customers in the shortest time.

The UCC also approved the winning bid, believing that the plan must be confirmed to ensure that customers receive distributions in the greatest amount.

Sequel to the development, FTX CEO Sam Bankman-Fried stated,

“We’re excited and hopeful to receive approval from the bankruptcy court so we can begin working closely with the Voyager team to return the funds to customers as soon as legally possible.”

About the Recovery Plan

Earlier reports revealed that FTX.US is offering a recovery plan that would return about 72% of Voyager’s customer funds.

Although the deal cannot be completed until US Bankruptcy Judge Michael E. Wiles grants the bankruptcy payout plan, which is expected as soon as early to mid-December.

“Under the plan, the purchase price of Voyager’s cryptocurrency by FTX US, other than for VGX, will be determined based on a 20-day historical average at a future point in time. Because of this, the pro rata value each customer receives will be impacted by the price of Voyager’s cryptocurrency portfolio during the 20-day reference period, which has not yet been set.”

After the go-ahead on the arrangement, Voyager and FTX.US will proceed with closing the sale and begin the process of returning value to customers via their exchange accounts, cryptopotato revealed.

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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