Binance, other crypto firms line up bids for bankrupt Voyager Digital after FTX collapse

Binance and different crypto firms are preparing takeover offers for beleaguered integer currency lender Voyager Digital aft FTX, which had initially agreed to get the firm, filed for bankruptcy.

Voyager filed for Chapter 11 bankruptcy protection, which seeks to restructure troubled firms arsenic viable concern operations, successful July aft crypto hedge money Three Arrows Capital defaulted connected a indebtedness from the institution worthy $670 million.

Voyager was set to beryllium acquired by FTX's American unit, FTX U.S., for $1.4 cardinal aft Sam Bankman-Fried's steadfast won successful a U.S. bankruptcy auction. It was past thrown backmost to quadrate 1 aft FTX itself filed for bankruptcy aft experiencing its ain slope run-style surge successful withdrawals.

Customers of Voyager person been incapable to get their funds retired since it paused withdrawals amid an industry-wide liquidity crisis.

This week, Binance confirmed reports that its U.S. subsidiary Binance.US plans to marque an connection to rescue Voyager from collapse. Binance.US had antecedently offered to bargain Voyager arsenic portion of its insolvency auction. 

Speaking connected Bloomberg, Binance CEO Changpeng Zhao said Binance.US "will marque different bid for Voyager now, fixed FTX is nary longer capable to travel done connected that commitment."

Zhao has besides acceptable up a $1 cardinal fund aimed astatine supporting ailing companies successful the industry.

CrossTower, a crypto and NFT trading platform, was among the parties that initially competed to bargain Voyager successful the tribunal auction. The institution says it plans to marque a renewed connection for the institution — though details are scant for now.

CrossTower is "submitting a revised bid, 1 it feels volition payment some the customers and the wider crypto community," a CrossTower spokesperson told CNBC via email.

CrossTower is besides readying its ain abstracted manufacture betterment fund. The steadfast told CNBC it doesn't presumption the money arsenic "competing" with Binance's.

"This is astir stabilizing an industry, regaining spot and rebuilding what is arguably the aboriginal of finance," the CrossTower spokesperson said.

"We volition bash so, with funds and talent, and we volition collaborate with governments and argumentation makers and beforehand transparency. One task money did not physique the exertion manufacture and 1 betterment money volition not rebuild this one."

Meanwhile, Wave Financial is besides readying to marque a caller connection to get Voyager, aft having initially mislaid retired to FTX, according to a study from London's Financial News newspaper.

Matteo Perruccio, president of planetary for Wave, declined to remark connected the study erstwhile contacted by CNBC via WhatsApp. Last month, Perruccio told CNBC his institution "felt that our bid was amended for the investors and the debtors."

Wave's bid "saw america reinvigorating VGX," Voyager's speech token, helium said successful the October interview.

Voyager customers are hopeful that immoderate firm bailout of the steadfast volition see VGX, a token that was created by Voyager arsenic a benignant of loyalty rewards program, offering discounts connected trading fees.

"We besides had some, I think, beauteous clever ideas astir however to bring postulation astatine a overmuch little outgo of acquisition astatine a higher per lawsuit balance, which were the 2 large problems astatine Voyager," Perruccio told CNBC successful October.

In August, Voyager paused trading and transfers of VGX and outlined a program for customers to swap their tokens for caller coins connected a abstracted blockchain. The destiny of the token, which has fallen implicit 85% since the commencement of the year, remains unclear.

FTX U.S. had offered to bargain each the VGX held by Voyager and its affiliates for $10 million. But Voyager said it was moving to find a "higher and amended solution" for the token that was compatible with FTX U.S.' offer. 

FTX U.S. is present portion of bankruptcy proceedings successful a Delaware court, on with its genitor institution and different affiliates including Alameda Research. The company's connection was initially rejected by Voyager, which called it a "low-ball bid dressed up arsenic a achromatic knight rescue."

Another subordinate progressive successful the messy restructuring process is Ethos.io, a startup Voyager had acquired successful 2019. Voyager lone acquired Ethos.io's technology, and the steadfast is readying to revive itself arsenic a abstracted marque aft Voyager's collapse.

Shingo Lavine, co-founder of Ethos.io, says his firm's exertion was halfway to helping Voyager physique retired its crypto capabilities. Voyager saw important maturation aft offering enactment for dogecoin, a meme-inspired integer coin, helium added. 

Adam Lavine, Shingo's begetter and chap co-founder of Ethos.io, said the institution has established its ain betterment programme for VGX holders and Voyager creditors and has "seen a bully effect truthful acold crossed the Voyager community."

So far, "several 1000 users representing 10% of the full VGX marketplace cap" person signed up to the betterment initiative, the elder Lavine said. Voyager was not instantly disposable for remark erstwhile contacted by CNBC.