On Monday, Voyager Digital said crypto exchange FTX had won its assets in a USD 1.42-billion bid at an auction. Earlier this year, Voyager Digital had rejected the bailout proposal of the latter. Voyager reported that the FTX bid comprises a fair market value of all its cryptocurrency, pegged at about USD 1.31 billion at current market prices and an additional USD 111 million in incremental value.

The company stated that its claims against hedge fund Three Arrows Capital would remain with the bankruptcy estate, which would distribute any available recovery on such claims to the estate’s lenders. In June, Voyager issued a notice of default to the Singapore-based hedge fund for failing to make required payments on a loan of 15,250 Bitcoin.

In July, the company rejected a proposal from FTX, founded by billionaire Sam Bankman-Fried, as a ‘low-ball bid dressed up as a white knight rescue’. It alleged the plan would disrupt its bankruptcy process.
Bankman-Fried has been providing lifelines to support companies in a shaky digital assets sector, aggressively acquiring assets, technologies and customers of distressed crypto companies at cheap valuations.

In July, FTX revealed a 7.6 per cent stake in Robinhood Markets Inc and handed US cryptocurrency lender BlockFi a USD 250 million revolving credit facility in June, along with a deal providing FTX with the right to buy it based on certain performance triggers.