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Crypto Exchange FTX Wins Bankrupt Firm Voyager’s Assets
FTX, the digital-asset exchange controlled by billionaire Sam Bankman-Fried, has won the auction for the assets of bankrupt crypto brokerage Voyager Digital Ltd. with a bid of about $50 million, according to people familiar with the matter.
Harshvardhan
1:29 27th Sep, 2022
Markets

The acquisition price could climb if milestones such as assets under management are met, one of the people said. Neither FTX nor Voyager immediately replied to requests for comment.

The purchase follows several earlier attempts by FTX to bail out or acquire Voyager. The New York-based platform had about 3.5 million users at the end of March, and 1.19 million funded accounts.

Former Wall Street Journal reporter Liz Hoffman earlier posted on Twitter that FTX had won the auction and the purchase price details, citing people she didn’t identify.

Voyager filed for bankruptcy protection in July after a failed attempt by Alameda Research -- a trading house affiliated with FTX -- to bail it out with a revolving line of credit.

That same month, FTX and Alameda disclosed a joint bid for Voyager, but Voyager called it a “low-ball” offer. In September, Alameda said it will return about $200 million worth of Bitcoin and Ether it had borrowed from Voyager by the end of the month.

Bankman-Fried has been aggressively buying up distressed crypto companies this year, scooping up millions of customers and valuable technologies at a cheaper price than they traded at just half a year ago.

Earlier this year FTX propped up the crypto platform BlockFi and was exploring a potential takeover of Robinhood Markets Inc., where Bankman-Fried owns a stake. He is estimated to own more than 50% of FTX, 70% of FTX US, and almost all of Alameda.

FTX is in the process of raising a $1 billion funding round, according to a source familiar with the deal, which hasn’t closed yet or been made public.

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