Binance and FTX lead Voyager auction: WSJ

Crypto exchanges FTX and Binance are leading the auction for embattled crypto-lender Voyager, according to a new report from the Wall Street Journal.

The auction for Voyager began last week in the law offices of Kirkland & Ellis, though a bid has yet to be accepted six days on. According to today’s report, Binance bid approximately $50 million for the platform’s assets. That’s a slightly higher bid than FTX, according to the WSJ’s sources. 

Lawyers in the bankruptcy process have yet to give an update on the bidding process, disclosing only that it remains ongoing. Bidders may submit a variety of types of proposals, from a simple purchase of Voyager’s assets to an attempted restructuring and resuscitation of the firm.

Voyager has not broadly disclosed its ideal proposal, though it did push back when FTX publicized its plan to provide early liquidity to customers, saying the exchange failed to respect the confidentiality stipulations of the bidding process. At the time, counsel called it a low-ball bid and sought to dispel the notion that FTX was a frontrunner for the platform. 

Meanwhile, reports have circulated that Binance is facing some opposition over its bid due to concerns that the U.S. government might take issue with its attempt to purchase the platform. 

The auction winner is slated for announcement at a Sept. 29 hearing.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Aislinn Keely joined The Block in the summer of 2019. She is a member of the outlet’s policy team, holding down the legal beat. Before The Block, she lent her voice to the NPR affiliate WFUV, where she reported and anchored newscasts in addition to some podcast work. Aislinn is a proud Fordham Ram and editor-in-chief emerita of its newspaper. When she isn’t writing or reporting, Aislinn is running and rock climbing.