Voyager to Auction its Assets on September 13
- Voyager filed for bankruptcy in July after pausing withdrawals, deposits, and trading.
- The crypto lender is working towards paying off customers whose funds were affected by the crash.
Centralized crypto lender, Voyager, reportedly filed a notice with the United States Bankruptcy Court for the Southern District of New York, alerting the court of its plans to auction its remaining assets on September 13. The auction will take place in Manhattan, in an office facility belonging to Moelis & Company. According to reports, a hearing to decide the result of the auction has been set for September 29. Voyager’s auction was originally scheduled for August 29.
Different parties are required to express interest in purchasing Voyager Digital’s assets for an auction to take place, and the bankrupt firm has not been short of suitors. Voyager said it had received multiple bids from different parties.
Notably, crypto exchange FTX made an offer to purchase some of Voyager’s assets in July, but the lending company felt the offer was a “lowball” and rejected it days after it was made.
Voyager announced on July 5 that it was filing for Chapter 11 bankruptcy with more than $1 billion in obligations after suspending trading, deposits, withdrawals, and loyalty awards on July 1. However, the crypto lender maintained that customers with cryptocurrencies in their accounts would get a mix of the assets in their account(s), funds from the 3AC claim, and shares in the reorganized firm.
Despite early objections from investors, the court allowed Voyager Digital to pay $1.9 million in bonuses to key workers the business claimed were essential to its continued operations. Creditors initially dismissed the request, urging Voyager to prioritize payments to investors before its staff.
However, the lending firm maintained that the 38 staff were responsible for handling key accounting, financial and digital asset management, IT infrastructure, legal, and debtor responsibilities. Court documents later revealed that Voyager and its creditors came to terms, enabling it to proceed with its intended KERP. However, the agreement came with specific regulations. According to the deal, Voyager was required to put operational cost-cutting measures in place to save $4.6 million.