Voyager Digital Will Auction Assets on September 13

Crypto lender Voyager Digital Ltd. is insolvent but has succeeded in drawing enough interest from potential buyers to begin an auction. The auction is planned on September 13, 2022, in the New York offices of Moelis & Co., Voyager's bank. This information was shared via a notice filed in the bankruptcy court recently. A court hearing to approve the results will be held on September 29.

There is a need for auction only because Voyager has received more than one acceptable bid for its assets, and none of the bids were the best. The deadline for submission of bids ended on September 6.

This is probably good news for Voyager customers who are still locked out of their accounts. If Voyager is sold at a high price, it might mean better recoveries for customers.

Though Sam Bankman-Fried's FTX and Alameda publicly disclosed a joint bid for Voyager in July, Voyager didn't seem enthusiastic about it and called it a "low-ball" offer. In the first week of August, a court document suggested that eighty-eight parties had contacted Voyager, and twenty-two were in active talks with the company.

One of those interested parties could be Binance. Another party is FTX, whose first offer was rejected and is probably trying to make a new one.

The bankruptcy is Voyager Digital Holdings Inc., 22-10943. It is filed with U.S. Bankruptcy Court for the Southern District of New York (Manhattan).

Voyager also talked about the auction in a series of tweets that were published on September 7 and shared widely. In the first tweet, the company wrote, "We want to let you know that multiple bids were submitted as part of the company's restructuring process."

It added that it would "share more information about the winning bidder" and the implications of the auction for customers after the process is concluded later this month.

The trouble with the company became highly evident about two months ago, on July 1. On this date, the company froze withdrawals. In August, things changed, and the company got permission to reopen the withdrawals. At that time, the company shared its plans to reopen withdrawals with a daily limit of $100,000. It is not clear yet whether the company managed to follow through on those plans or not.

The upcoming auction should help boost the restructuring plan of Voyager and might help it return the funds to its customers.

Voyager is already working to return some money to its customers. On August 5, the New York bankruptcy court that is handling the case approved a proposal to return $270 million to the affected customers of the company. $1 billion of the remaining funds of the platform will be distributed through the bankruptcy process.

Users have been sent emails that list the types and amounts of crypto in their Voyager accounts. If users disagree with their holdings' record, they can submit a claim till October 3. Voyager has declined to comment on the matter till the time of publication. Know more about Voyager here.


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