Bankrupt Voyager Digital to hold asset auction on September 13

Crypto lender Voyager Digital will hold an auction of assets next week, more than two months after filing for bankruptcy.

The auction will take place on September 13, starting at 10 am ET, according to a court filing dated Tuesday. Qualified bidders in the auction, which will determine who will buy the platform’s assets, submitted their proposals yesterday. A hearing to approve the results is scheduled for September 29. 

Voyager entered Chapter 11 bankruptcy proceedings in July after halting activity on its platform. As of August 4, Voyager’s counsel said 22 parties were in meaningful discussions to place bids for its assets and that multiple offers had been received.

The original deadline for bids had been extended to September 6 from August 26, after interested parties requested more time.  

Bidders are kept confidential in this process, although crypto exchange FTX and its associated firm Alameda publicized their bid in July — provoking a sharp response from Voyager’s counsel.

Bids can vary in offering different solutions to the bankruptcy in terms of amount of funds or level of assistance in the reorganization. The Voyager counsel will decide on the proposal it deems most valuable to customers and creditors.

On July 5, Voyager began its restructuring process when it filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, which is being administered in the United States Bankruptcy Court for the Southern District of New York. This code allows Voyager’s assets to be sold free of “liens, claims, interests, and encumbrances.»

Source