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Binance, others line up bids for bankrupt Voyager after FTX collapse

by News Desk
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Voyager said it has about $1.3 billion in cryptocurrency on its platform and more than $350 million in cash on behalf of clients of the Metropolitan Commercial Bank of New York.

Justin Sullivan | Getty Images

Cryptocurrency firms such as Binance are preparing a takeover offer for beleaguered digital currency lender Voyager Digital.

Voyager plans to restructure the troubled company as a viable business operation in July after crypto hedge fund Three Arrows Capital defaulted on a $670 million loan from the company. filed for Chapter 11 bankruptcy protection.

Voyager is Will be acquired by FTX’s American division, FTX US sold for $1.4 billion after Sam Bankman-Fried’s company won US bankruptcy auction.It was then brought back to the drawing board after FTX itself filing for bankruptcy After experiencing a surge in withdrawals with its own banking style.

Voyager customers have been unable to withdraw their funds since they suspended withdrawals amid the industry-wide liquidity crisis.

This week, Binance confirmed reports that its US subsidiary, Binance.US, is planning an offer to rescue Voyager from collapse. Binance.US previously offered to buy Voyager as part of a bankruptcy auction.

Binance CEO Changpeng Zhao told Bloomberg that Binance.US “will bid again on Voyager given that FTX has failed to deliver on its promises.”

Zhao also $1 billion fund It aims to help companies in distress in the industry.

CrossTower, a cryptocurrency and NFT trading platform, was one of the first parties to contest the purchase of Voyager in a forensic auction. The company says it plans to make a new proposal for the company, but details are scarce so far.

CrossTower is “submitting a modified bid that we believe will benefit both our customers and the wider cryptocurrency community,” a CrossTower spokesperson told CNBC in an email.

CrossTower is also planning its own industry recovery fund. The company told CNBC that it does not believe the fund is “competing” with Binance.

A CrossTower spokesperson said: “This is about stabilizing the industry, regaining trust and arguably reshaping the future of finance.

“We will do so with money and people. We will work with governments and policy makers to promote transparency. One venture fund will not build the tech industry, one recovery fund will rebuild it. Do not build.”

Meanwhile, Wave Financial is also planning to make a new offer to buy Voyager after initially losing out to FTX, reports a London report. financial news newspaper.

Wave International President Matteo Perruccio declined to comment on the report when contacted by CNBC via WhatsApp. Perruccio told CNBC last month that his company “felt our bid was better for investors and debtors.”

Wave’s bid “reinvigorated VGX,” Voyager’s exchange token, he said in an interview in October.

Voyager’s customers expect the company’s corporate bailouts to include VGX, a token created by Voyager as a kind of loyalty reward program that offers discounts on transaction fees.

Perruccio told CNBC in October:

In August, Voyager suspended VGX trading and transfers, outlining plans for customers to exchange their tokens for new coins on another blockchain. stay.

FTX US had offered to buy all VGX owned by Voyager and its affiliates for $10 million. However, Voyager said it is working to find “more advanced and better solutions” for tokens compatible with FTX US’s offer.

FTX US, along with its parent company and other affiliates, including Alameda Research, is currently in bankruptcy proceedings in a Delaware court. The company’s proposal was initially rejected by Voyager, calling it a “cheesy bid disguised as a White Knight rescue”.

Another player involved in the messy restructuring process is Ethos.io, a startup that Voyager acquired in 2019. Voyager only acquired his Ethos.io tech, and the company plans to revive it as a separate brand after Voyager’s demise.

Ethos.io co-founder Shingo Lavine says his company’s technology is core to helping Voyager build its crypto capabilities. Voyager has seen significant growth after offering support for his dogecoin, a meme-inspired digital coin, he added.

Adam Lavine, father of Shingo and co-founder of Ethos.io, said the company has established its own recovery program for VGX holders and Voyager creditors, and that “the entire Voyager community has We’re seeing good reactions,” he said.

So far, “thousands of users representing 10% of VGX’s total market capitalization” have signed up for the recovery initiative, Lavine said. Voyager was not immediately available for comment when contacted by CNBC.

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