Hassan Maishera
Voyager Digital announced via a blog post over the weekend that a United States court has approved its $1.422 billion agreement with FTX.
According to the blog post, the agreement would see the cryptocurrency exchange acquire Voyager and its assets. The bid submitted by FTX includes the fair market value of the crypto lender’s assets as of September 26th, with a combined worth of $1.31 billion. It also includes $111 million set aside to pay back creditors.
Following this latest development, Voyager Digital is now urging its customers to vote on the plan and approve the acquisition. Voyager said;
“Voyager and its affiliated debtors believe that the sale to FTX US is in the best interest of all stakeholders and, ultimately, is the best possible – and only actionable – transaction available.
As such, Voyager and its affiliated debtors urge you to properly and timely submit your ballot, in advance of the November 29th deadline, with a vote to accept the plan.”
Voyager Digital added that only customers who successfully transition to FTX would become eligible to receive cryptocurrency assets supported by the FTX exchange. The assets serve as compensation, while those who don’t wish to transition to FTX will receive cash. Voyager added that;
“Value may be returned to customers through a mix of in-kind crypto, USDC [USD Coin], and US dollars, depending on the nature of a customer’s claims, whether and when customers transition to FTX US, and the specific coins supported on the FTX US platform.
Only customers who transition to FTX US will be eligible to receive cryptocurrency as part of their plan distribution – customers who do not transition to FTX US will receive their distributions in cash from the Voyager bankruptcy estates.”
This latest development comes a few days after Voyager Digital tabled the proposal before its creditors. Voyager account holders remain the primary creditors in the bankruptcy, with court documents showing that they have claims worth $1.76 billion
The creditor votes are expected to be concluded by November 29, and Voyager will seek final approval of the sale in a confirmation hearing the following month.
FTX reviews within and outside the United States have been positive, and its acquisition of embattled cryptocurrency companies could attract many crypto traders to the cryptocurrency trading platform. Also, the low FTX fees also mean that the cryptocurrency exchange is growing far more quickly than any other reputable crypto trading platform.
