Voyager Digital assets auction set for September 13 in Manhattan after company declares bankruptcy

Image: Shutterstock

Voyager Digital, a centralised crypto lender that has declared bankruptcy, filed a notice with the United States Bankruptcy Court for the Southern District of New York, informing the court of the company’s intention to hold an auction of its remaining assets. The auction has been proposed to happen on September 13 at the Manhattan office of Digital Voyager’s investment banker Moelis & Company. Following the auction, a hearing is to be held on September 29 to approve the results of the auction. Reports suggest that offers for the assets have already been submitted.

The company had the intention of holding an auction earlier as well, since it had been scheduled for August 29. Rules dictate that, for an auction to be held, multiple parties need to show interest in the company’s assets. FTX presented an offer to buy all Voyager Digital asset and digital asset loans, except for the Three Arrows Capital (3AC), which was labelled as a “lowball”.

Voyager Digital declared bankruptcy days after issuing a default notice and was reportedly exploring legal remedies against 3AC, which owed the company 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC). Shortly after, Voyager suspended trading, deposits, and withdrawals on 1 July and announced that it was going into Chapter 11 reorganisation with upwards of $1 billion in debts. Customers were to be given “a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganised Company, and Voyager tokens.”

Amongst the legal proceedings, the company was also able to get the go-ahead from the court to pay “key employees” bonuses totaling $1.9 million, despite objections from some investors.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash