Several cryptocurrency companies, including Binance, are considering takeover bids for struggling digital currency lender Voyager Digital after the FTX collapse.
FTX previously announced its plan to acquire the company before filing for bankruptcy.
Amid a widespread liquidity crisis in the sector, Voyager Digital temporarily suspended withdrawals, leaving its customers without access to their money.
The Downfall of Voyager and FTX
In July, after a $670 million debt default by crypto hedge fund Three Arrows Capital, Voyager Digital filed for Chapter 11 bankruptcy protection, which aims to rebuild insolvent enterprises as viable commercial operations.
Voyager Digital suspended the trading and transfers of its token VGX in August.
As per CNBC's report, the firm provided details on how clients may exchange their tokens for new ones on a different network. The future of the token was uncertain as it dropped more than 85% since the beginning of the year.
FTX founder Sam Bankman-Fried won in a US bankruptcy auction. Thus the crypto firm was going to purchase Voyager Digital for $1.4 billion.
However, it was sent back to square one when FTX declared insolvency after a withdrawal spike reminiscent of a bank run.
Offer from Binance
This week, Binance.US confirmed rumors that it will make an offer to save Voyager Digital from foreclosure.
Binance.US had bid for Voyager Digital during its bankruptcy auction, showing interest in purchasing the company.
Binance CEO Changpeng Zhao told Bloomberg, "[Binance.US] will make another bid for Voyager now, given FTX is no longer able to follow through on that commitment," referring to the acquisition.
For the purpose of helping struggling businesses in the sector, Zhao has also established a $1 billion fund.
Other Bidders
One of the early bidders in the court auction for Voyager Digital was CrossTower, a crypto, and NFT trading platform. Company representatives have indicated that they want to make a second bid for the business. However, details are currently scarce.
According to an email sent to CNBC by a CrossTower spokesperson, the company is "submitting a revised bid, one it feels will benefit both the customers and the wider crypto community."
CrossTower is furthermore organizing a distinct industry recovery fund. The company told CNBC that it does not consider the fund to be "competing" with Binance's.
"This is about stabilizing an industry, regaining trust and rebuilding what is arguably the future of finance," said the representative.
A story from London's Financial News newspaper claims that Wave Financial, which lost out to FTX in the bidding for Voyager Digital, is to make a new offer to purchase the company.
Other Updates
This month, FTX joined its parent firm and several affiliates, including Alameda Research, in filing for bankruptcy in a Delaware court.
In a recent development of the investigations, the FTX client base is broken down by region. Despite China's crypto prohibition, the country still accounts for 8% of the exchange's total customers.
This article is owned by Tech Times
Written by Trisha Kae Andrada
