Before FTX.US was awarded the contract, Judge Wiles advised the lender to include “fiduciary out.”
The bankruptcy court authorized the United States-based cryptocurrency exchange FTX.US to engage in an asset acquisition deal with the insolvent cryptocurrency lender Voyager.
According to the official release, the value of FTX.US is around $1,422,000,000. Voyager said it would proceed with a consumer vote on the larger recovery plan, which includes the sale to the cryptocurrency exchange. The deadline for voting on the same is set for November 29. The troubled lender said that the approach would maximize creditor recovery.
Voyager said that FTX.US was selected as the highest and best bidder for its assets after many rounds of bidding in a “very competitive” auction. The whole procedure lasted two weeks, and the Official Committee of Unsecured Creditors participated actively.
The lender said that the winning proposal is “much better” for consumers than its first bid and will maximize the value returned to clients in the quickest amount of time.
The UCC supports FTX.US’s winning proposal and agrees that the strategy must be verified to guarantee that clients get the largest amount of distribution. After the occurrence, FTX CEO Sam Bankman-Fried commented,
Earlier sources indicated that FTX.US’s recovery plan would restore around 72 percent of Voyager’s client assets. Notably, the purchase cannot be finalised unless US Bankruptcy Judge Michael E. Wiles approves the bankruptcy payment plan, which is anticipated between early and mid-December.
“According to the proposal, the purchase price of Voyager’s cryptocurrency by FTX US, excluding VGX, will be decided in the future based on a 20-day historical average. Due to this, the pro rata value each client gets will depend on the price of Voyager’s cryptocurrency portfolio over the undetermined 20-day reference period.”
After the acceptance of the agreement, Voyager and FTX.US will close the transaction and begin the process of crediting consumer exchange accounts. Last month, FTX won an auction for almost $1 billion worth of Voyager’s assets.
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