Voyager Digital, which recently filed for Chapter 11 bankruptcy, says it received better buy offers than FTX. The company declined FTX’s offers to acquire its assets and provide liquidity to its users so that they could withdraw cash. However, there is no information about which companies bid higher for Voyager than FTX. The company said that FTX’s bid to buy them was the lowest. And other offers will allow users to withdraw a higher percentage of their deposited funds.
What happened to Voyager Digital?
Three Arrows Capital (3AC), yes, that’s the name that took several firms down recently. They were the first to withhold withdrawals and file for bankruptcy, and the firms that 3AC was in contact with were in great turmoil. So, initially, 3AC had about $10 billion in assets under management which is a huge amount that has instilled confidence among creditors and investors. Such was the case with Voyager Digital.
He gave an unsecured loan of $600M (without any collateral) to 3AC. The Company did not feel the need to keep assets in backup for recovery of funds. But very soon, 3AC’s total AUM fell by 60% to $4 billion. Therefore, 3AC was unable to repay its debt. As of April 2022, he had only $3 billion left in AUM. 3AC also lost a lot of money in the Luna crash, which took the entire crypto market by surprise. All this is happening with 3AC, which has led to the demise of companies that had a big risk with them.
In addition, Voyager Digital also offered unrealistic crypto rewards and interest rates to attract users. Somehow, that also hurts their ability to recover from this market crash. Therefore, the company had to file for bankruptcy after the withdrawal was put on hold citing poor market conditions. Now, the only hope for Voyager is that the crypto market will recover.
Crypto Market Now!
Bitcoin and Ethereum are in good shape right now, trading above $23k and $1.6k respectively. Altcoins have also corrected over the past few weeks, and things are looking good at the moment. However, the BTC Fear and Greed Index is yet to recover, and we are still at 31, which shows fear. We can expect the correction to continue until greed or excessive greed comes back into the market.
What are your thoughts as Voyager Digital says it has better buyout offers than FTX? And do you believe in them? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
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