Crypto Web3

FTX Buys Assets Of Bankrupt Voyager; Celsius’ CEO Leaves

The fallout from this summer’s notable crypto bankruptcies continues to trickle in.

On Tuesday, it was announced Sam Bankman-Fried’s crypto exchange giant FTX would buy the assets of crypto lender Voyager Digital, which filed for bankruptcy in July for $1.4 billion.

The deal was announced in a blog from Voyager after FTX US won an auction for its assets. The U.S. subsidiary of FTX will pay the current estimated market price of $1.3 billion, plus an additional $111 million in anticipated incremental value, according to the post.

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The deal is just the latest for Bankman-Fried, as he has used this crypto winter to go shopping for value. In July, FTX provided a $250 million line of credit to lender BlockFi which includes an option to buy. In a recent interview with CNBC’s Squawk Box, he said the exchange giant has at least $1 billion to use on acquisitions and bailouts.

In July, Voyager filed for bankruptcy. In that filing, the company specifically noted that crypto hedge fund Three Arrows Capital—or 3AC—had defaulted on a loan. Singapore-based 3AC collapsed after the downturn in digital currencies left it unable to meet obligations and filed for Chapter 15 bankruptcy itself on July 1. 

Stepping aside

A week after Voyager’s filing, lender Celsius Network filed for Chapter 11 protection, and on Tuesday the company announced Chief Executive Officer Alex Mashinsky has decided to step down.

“I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing,” Mashinsky said in announcing his resignation.

In July, Celsius said it was filing for bankruptcy to “stabilize its business and consummate a comprehensive restructuring transaction,” and listed nearly $1.2 billion in debt.

Crypto lenders have found themselves vulnerable after offering high-yield crypto loans as cryptocurrency prices have crashed this year.

Further reading:

Crypto Lending Platform Celsius Network Files For Bankruptcy

Crypto M&A Slows As Its Own Type Of Winter Sets In

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