FTX buys assets of bankrupt Voyager; Celsius CEO leaves

ByDonald L. Leech

Sep 27, 2022

The fallout from notable crypto bankruptcies this summer continues to be felt.

On Tuesday it was announced Sam Bankman Friedthe crypto exchange giant FTX would buy the assets from the crypto lender digital travelwhich filed for bankruptcy in July for $1.4 billion.

The deal was announced in a Blog to travel after United States won an auction for its assets. The US 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.

Search less. Close more.

Increase your revenue with all-in-one prospecting solutions powered by the leader in private business data.

The deal is just the latest for Bankman-Fried, as it has used crypto this winter to make valuable purchases. In July, FTX provided a $250 million line of credit to the lender BlockFi which includes a purchase option. In a recent interview with CNBC’s Squawk Boxhe said the stock market giant has at least $1 billion to use for acquisitions and bailouts.

In July, Voyager deposit for bankruptcy. In this filing, the company specifically noted that the crypto hedge fund Capital of the Three Arrows—or 3AC—had defaulted on a loan. Singapore-based 3AC collapsed after falling digital currencies prevented it from meeting its obligations and itself filed for Chapter 15 bankruptcy on July 1.

Step aside

One week after Voyager’s filing, the lender Celsius Network filed for Chapter 11 protection, and on Tuesday the company announced the chief executive Alex Mashinsky decided to withdraw.

“I regret that my continued role as CEO has become an increasing distraction, and I am truly sorry for the difficult financial circumstances that 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 complete a comprehensive restructuring operation”, and listed nearly $1.2 billion in debt.

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

Further reading:

Celsius Network Files For Bankruptcy Crypto Lending Platform

Crypto M&A slows as its own kind of winter sets in

The Crunchbase Web3 Tracker

Drawing: Dom Guzman

Stay up to date with recent funding rounds, acquisitions and more with the Crunchbase Daily.