Binance to relaunch bid for bankrupt crypto lender Voyager
Binance.US is preparing to bid for bankrupt lending platform Voyager Digital, says the person familiar with the plans.
The American arm of Binance has decided to relaunch the bid for bankrupt crypto lender Voyager Digital. The previous auction was completed around the end of last September, which saw the now defunct FTX emerging as the “white knight,” winning out against rivals Wave Financial and Binance.
However, following FTX’s bankruptcy announcement last week, Voyager had to reopen the bidding process for the company, and is in active discussions with alternative bidders. Wave Financial and trading platform Cross Tower are reported to be in the running. Following the announcement, Voyager's native token VGX jumped as much as 50%.
The managing partner at investment firm 507 Capital, Thomas Braziel said matters are complicated by the fact that Voyager is going to have a claim against the FTX estate for breach of contract.
“The problem is that the claim is only going to be against FTX US,” said Braziel adding that, “I worry a lot of the collateral is going to be held in trust. So any cause of action they have could end up being behind all the customers. And the problem is that if customers aren’t going to be made whole, then what’s your unsecured claim going to be worth? It’s going to be worth bupkis.”