FTX US’s bid is valued at approximately $1.4 billion, according to a Voyager press release late Monday Eastern time.
Exchange giant FTX won the bidding war to buy the assets of bankrupt Voyager Digital, Voyager said in a press release late Monday Eastern time. FTX was bidding against Wave Financial, a digital-asset investment firm.
Voyager Token (VGX) rose after the announcement, gaining 3.76% as of 04:17 UTC, trading around 76 U.S. cents.
Crypto lender Voyager Digital filed for bankruptcy in July. Industry observers had been increasing their scrutiny of Voyager’s business practices, particularly how the Canadian-listed firm said in marketing materials that investors’ deposits were protected by Federal Deposit Insurance Corporation (FDIC) insurance.
While FDIC insurance would indeed protect bank-held cash deposits up to $250,000, it would not cover cash converted to stablecoins. According to writer Frances Coppola, Voyager’s loan book accounted for nearly half of its total assets, and nearly 60% of that loan book was composed of loans to Three Arrows, which filed for Chapter 15 bankruptcy, also in July.