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Crypto brokerage firm Voyager Digital is set to auction off the rest of its assets on Tuesday, September 13. News of the move emerged after the platform filed a notice with the U.S. Bankruptcy Court of the Southern District of New York.
Auction to Take Place On September 13
According to the filing, the auction will hold in Manhattan at the offices of Voyager’s investment bank Moelis and Company. Afterward, on September 29, the court will conduct a hearing to review the offers for the platform’s assets.
Voyager Digital was one of several crypto platforms affected by the collapse of the stablecoin ecosystem Terra. The platform’s auction was initially set to hold on August 29. However, for an auction to take place, several parties must move to acquire the company’s assets.
Notably, crypto exchange platform FTX had attempted to acquire all of Voyager’s assets as well as the company’s loans. The exchange did not include Voyager’s loans to crypto hedge fund Three Arrows Capital (3AC) in its offer. FTX reached out on July 22. However, Voyager believed the offer was too low and rejected it not long after.
Multiple Bidders For Voyager Assets
Interestingly, Voyager has not at all been short on bids for its assets. Voyager’s team shared an update to the community via its official Twitter account. In the post, the platform revealed that it has received multiple bids as they restructure.
Voyagers, we want to let you know that multiple bids were submitted as part of the company’s restructuring process. As a result, an auction is scheduled for September 13th. (1/3)
— Voyager (@investvoyager) September 7, 2022
Indeed, the filing was in line with Voyager’s post as the document claims roughly 88 entities are looking to acquire Voyager’s assets. 22 of these are reportedly in talks with the firm at the moment. According to the filing, these offers are “higher and far better” than the offer from AlamedaFTX.
Details of the Claim Process
Voyager’s tweet also noted that once the auction was over the team would share details on the winning bidder. Of course, on August 24, the platform explained steps customers should take to reclaim their assets. Creditors have a deadline of October 3 to go over the crypto lender’s debt and submit proof to verify their claim.
Once the auction is over, the customers of the collapsed firm should be able to take ownership of their funds once more. Voyager aims to provide clarity on how exactly the auction affects customers and the claim process. For now, however, they encourage users to review the information they have already received about the company’s restructuring process.
Early in July this year, Voyager applied for chapter 11 bankruptcy. This came a week after Voyager ceased withdrawals and other services such as trading, deposits, and loyalty rewards. The crypto broker cited plans for a structural overhaul as well as its intentions to kick off operations once more.