FTX Acquires Bankrupt Crypto Lender Voyager for $1.42 Billion

Key Highlights

• FTX, the crypto exchange founded by billionaire Sam Bankman-Fried, outbid Wave Financial to acquire Voyager’s assets.
  
• This acquisition could enable Voyager users to recover some of their lost cryptocurrency after Voyager’s collapse.
  
• The Voyager purchase is among several strategic acquisitions by Sam Bankman-Fried following the crypto market downturn earlier this year.

FTX has successfully acquired the bankrupt crypto lending platform Voyager for $1.42 billion after winning a competitive auction against Wave Financial. This acquisition follows Voyager’s earlier rejection of a bailout offer from FTX.

According to a press statement released late Monday, FTX US’s winning bid is valued at approximately $1.42 billion. This includes the estimated fair market value of Voyager’s cryptocurrency holdings, currently around $1.311 billion, plus an additional $111 million in incremental value.

Voyager’s Collapse

In July 2022, Voyager filed for Chapter 11 bankruptcy after the $2 trillion crypto market crash left it unable to fulfill withdrawal requests from users. The downfall was exacerbated by the collapse of Three Arrows Capital (3AC), a hedge fund that borrowed from Voyager to make high-risk token investments. 3AC’s portfolio included the failed stablecoin TerraUSD, and it defaulted on $670 million owed to Voyager.

Prior to its bankruptcy, Voyager claimed that investor funds were protected by the Federal Deposit Insurance Corporation (FDIC). However, this was inaccurate. Voyager’s cash deposits were held at Metropolitan Commercial Bank, which is FDIC-insured only against bank failure—not the failure of Voyager itself.

FTX Steps In

FTX’s acquisition signals a hopeful path for Voyager users who have limited legal options to reclaim their lost crypto assets. Voyager has indicated a potential migration of its customers to FTX US, promising that the platform will allow continued trading and storage of cryptocurrency after the bankruptcy proceedings conclude.

The asset purchase agreement will be submitted to the U.S. Bankruptcy Court for the Southern District of New York on October 19 for approval. The sale depends on creditor votes and other standard closing conditions.

Conclusion

Since the crypto market downturn in early 2022, FTX CEO Sam Bankman-Fried has actively acquired struggling crypto firms. For example, in July, FTX secured an option to acquire crypto lender BlockFi after extending a $250 million credit line. At just 30 years old, Bankman-Fried continues to have significant capital to invest in further strategic acquisitions, reinforcing his influential role in the evolving crypto landscape.

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