By Fabiana Negrin Ochoa
FTX has won an auction to acquire bankrupt cryptocurrency lender Voyager Digital Ltd. with a bid valued at $1.42 billion.
The valuation comprises $1.31 billion in estimated prices for all of Voyager's cryptocurrency and a roughly $111 million consideration, it said in a press release late Monday.
Voyager, which filed for bankruptcy in July after a selloff in cryptocurrencies, said the asset deal with FTX will be submitted to a New York bankruptcy court for approval next month.
The company said it received several bids and considered various options, including a standalone reorganization, before deciding that FTX offered the best alternative for its stakeholders.
Crypto exchange FTX had been vying with peer Binance to acquire Voyager, The Wall Street Journal reported previously.
Voyager also said that its claims against crypto hedge fund Three Arrows Capital Ltd. will remain with the bankruptcy estate, which will distribute any available recovery to creditors.
Three Arrows, which was ordered to liquidate in June by a British Virgin Islands court, defaulted on a loan of more than $650 million from Voyager.
Write to Fabiana Negrin Ochoa at firstname.lastname@example.org
(END) Dow Jones Newswires
September 27, 2022 01:25 ET (05:25 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.