The auction could last longer than Tuesday. The outcome of the bid or bids will be revealed at a hearing scheduled for September 29.

The platform’s spokesperson stated that there is also a chance that the results will be revealed sooner. According to a court document filed in the United States Bankruptcy Court for the Southern District of New York, on September 13, Moelis & Company, Voyager's investment bank, will grasp an auction for the crypto lender's assets.

It is still unknown how many bidders will attend the auction. Earlier this year, the company stated that it had been contacted by 88 parties, with 22 actively participating in the discussions. Although the interested parties have not been named, both FTX and Binance have shown interest in the platform’s assets.

Customers counting on the auction to recover frozen funds

It had frozen its customers' funds as it went bankrupt. Customers who had their savings withheld by Voyager wish this auction would support them and get their money back.

Customers have been unable to access their funds since the beginning of July, when the crypto market crash forced the lender to suspend withdrawals, causing the lender to go bankrupt.

FTX, a popular cryptocurrency exchange, offered $15 million in cash and an undisclosed sum for the assets. Voyager described it as a "lowball bid."

Voyager is a New York-based firm that was publicly traded in Toronto before filing for bankruptcy in July. This was in response to a large number of withdrawal requests received by the exchange. The investments were frozen and, in some cases, lost value as a result of the massive crypto meltdown.

Statements from Voyager

While the platform was uncertain and ambiguous, the crypto lender had announced and ensured that these cash transactions were covered by insurance by the Federal Insurance Corporation through its marketing policies (FDIC).

This has caused consumers to be skeptical. It also led many customers to believe that their cryptocurrency deposits were now protected. Although the platform was linked to the FDIC-insured Metropolitan Commercial Bank, the insurance failed to protect the customers.

The Federal Deposit Insurance Corp. is one of two agencies in the United States that are responsible for providing deposit insurance to depositors in depository institutions.

The National Credit Union Administration is the other corporation that regulates and insures credit unions. A customer reportedly stated that she lost $1 million on the Voyager platform, with the majority of her funds parked in a large sum in a stablecoin, which was also supposed to be FDIC insured.

What do you think about the crypto lender bankruptcy auction? Will there be someone interested in bidding on Voyager’s assets? 

Posted 
Sep 16, 2022
 in 
Crypto News
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