Thursday, December 8, 2022

Three Top Exchanges Line Up Offers to Buy Voyager Digital Assets In Auction

Insider sources are claiming that three crypto exchanges are currently competing to acquire Voyager Digital assets. They are FTX, Binance, and CrossTower. However, the news was first revealed by former investment banker Simon Dixon who took to Twitter to share the update in detail. 

According to Dixon, each exchange has put forward seemingly unique offers regarding the acquisition.

The Offers

Details posted to Reddit hint that FTX and Binance are offering to pay similar amounts of about $50 million in cash for Voyager Digital assets. But Binance looks to be offering a little bit higher in dollars. According to the source, this cash will be used to sort “deficiency and other claims.” 

Additionally, the FTX and Binance proposals would see original Voyager customers complete a full transition to whichever of their platforms that wins the bid. This is even as the customers get to receive their pro rata share of crypto assets.

CrossTower, however, has other plans. In its offer, the exchange promises to retain the existing Voyager platform and even its app. That is, there will be no need for any form of transition for users. And just as in the FTX and Binance proposals as well, customers would still receive their pro rata shares of crypto assets.

Another interesting aspect of CrossTower’s offer is that the exchange also has plans to continue sharing its revenue with Voyager customers for as many years as possible.

Voyager Digital Assets Auction Could Be Influenced By Regulation

It is worth noting that the winner of the auction may be largely influenced by current regulatory positions. Recall that recently, the U.K.’s Financial Conduct Authority (FCA), issued a warning to FTX about operating without approval. Binance itself might not be in the clear. This is because the government may have concerns about allowing a foreign entity such as Binance, to acquire Voyager. Usually, the Committee on Foreign Investment in the United States (CFIUS), blocks deals it worries might pose a national security risk.

Beleaguered crypto lender Voyager Digital filed for Chapter 11 bankruptcy in July. However, the platform has consistently maintained that the filing was only part of a reorganization plan. And that customers will eventually regain access to their various accounts.

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