Cryptocurrency exchanges FTX, Binance and CrossTower are vying to acquire the assets of beleaguered cryptocurrency lender Voyager Digital, according to insider sources.
According to details released by former investment banker and angel investor Simon Dixon, the three exchanges are competing in an auction to acquire Voyager Digital, and each has proposed its own terms and conditions for the acquisition. The details, which were also posted on Reddit, suggested that FTX and Binance have each proposed roughly $50 million in cash for Voyager’s assets, though Binance’s dollar amount is higher. The cash amount would go toward “deficiencies and other claims,” the source said.
IF THEY WANT YOU TO TAKE THE HIT PUSH FOR EQUITY TO FILL THE HOLE: https://t.co/ThslVDktYY – LATEST LATEST @investvoyager – 3 Bidders Compete in Voyager Digital Auction with Different Approaches to Platform, Advantage and Cash Consideration
— Simon Dixon (Beware of imitators) (@SimonDixonTwitt) September 22, 2022
Under these plans, existing Voyager customers will receive their proportionate share of crypto assets and full transition to the FTX and Binance platforms.
On the other hand, CrossTower has proposed to maintain the existing Voyager platform and app, which means that existing customers do not need to transition to a new platform after the deal ends. Under this plan, customers will also receive their proportionate share of assets. The CrossTower acquisition plan would also allow the exchange to share its revenue with Voyager customers over several years.
Sources who spoke to Dixon also revealed that regulation could play a role in winning the auction, as the UK’s Financial Conduct Authority, or FCA, recently warned FTX that it was operating without authorization Meanwhile, in the United States, the Committee on Foreign Investment may be concerned about allowing Binance to acquire Voyager due to national security risks.
Related: Voyager digital asset auction set for September 13 after being rescheduled from August
Voyager Digital filed for Chapter 11 bankruptcy in July, joining a growing list of centralized financial companies to implode during the bear market. Voyager explained at the time that the Chapter 11 filing was part of a reorganization plan that would eventually pave the way for customers to regain access to their accounts.