Beginning of Crypto Lender Voyager’s Bankruptcy Auction
Insolvent cryptocurrency lender Voyager Digital Ltd. has begun its auction in New York. The auction will be held at the Moelis headquarters in midtown Manhattan.
The auction may extend beyond Tuesday. The outcome of the offer or bids will be announced at a hearing set for September 29. According to a spokeswoman for Voyager, there is a possibility that the findings may be revealed early.
A document from the US bankruptcy court for the Southern District of New York reveals that Voyager’s investment bank, Moelis & Company, will auction off the crypto lender’s assets on September 13.
It is still unknown how many bidders will attend the auction. The firm said earlier in the year that it had been contacted by 88 parties, of whom 22 were actively involved in the negotiations.
Both FTX and Binance have shown interest in acquiring Voyager’s assets, however, neither party has yet been publicly identified.
Due to its bankruptcy, Voyager has frozen its clients’ cash. The Voyager clients whose investments were withheld by the corporation now hope that this auction will assist them in recovering their funds.
Customers of Voyager have been unable to access their accounts since the beginning of July when the lender was forced to restrict withdrawals and eventually declared bankruptcy due to the decline of the cryptocurrency market.
Popular cryptocurrency exchange FTX has offered $15 million in cash and an unknown sum for Voyager client data and assets. Voyager dubbed it a “lowball offer.”
Voyager is a New York-based firm that traded on the Toronto Stock Exchange and filed for bankruptcy in July.
The exchange has received a large number of withdrawal requests. Due to the enormous crypto crash, Voyager’s assets were frozen and, in some instances, even lost value.
While Voyager was somewhat unknown and confusing, the crypto lender had advertised and ensured that these currency deposits were protected by the Federal Deposit Insurance Corporation via its marketing rules.
This has especially caused consumers to develop scepticism. It also made many clients feel that their cryptocurrency deposits were now protected.
Even though the platform was associated with the FDIC-insured Metropolitan Commercial Bank, it was subsequently determined that the insurance did not protect the consumers.
The Federal Deposit Protection Corporation is one of the two entities tasked with providing deposit insurance to depositors in American financial institutions.