Voyager Auction Was Not in Depositors’ Best Interest, Wave Financial Official Claims

The assets of crypto brokerage Voyager Digital will face a dramatically different fate if FTX fails to win the bid, a spokesperson for Wave Financial told Cointelegraph. A spokesperson claims that a better bid was being considered but was “overlooked due to the strictly cash offer.”

Wave, an SEC-registered digital asset management company with over $1 billion in assets under management (AUM), participated in the auction process, bidding slightly below FTX for the asset. FTX secured his $1.4 billion winning bid, which is subject to U.S. Bankruptcy Court approval.

Wave defended its proposal as the only one seeking to keep the Voyager brand and create a new exchange model that caters to the crypto community regardless of the financial differences in bids.

RELATED: FTX US Wins Auction For Voyager Digital’s Assets

Specifically, Wave’s proposal is to “restore the value of the VGX token through new and improved utilities, saving $200 million worth of funds and redistributing assets to existing Voyager customers” and “new Extending the revenue-sharing program to depositors through an exchange model”. , driven by the liquidity and community of major Layer 1 protocols who participated as investors and minority shareholders. A Wave spokesperson also said:

“Wave will launch a blind auction process (during the week of September 12th in New York) that employs a “white night” approach that prioritizes the economic interests of depositors by restoring the value of VGX tokens and generating long-term profits. was the only bidder remaining during the Revenue Sharing Model — Both returned substantial equity directly to depositors. ”

After winning the bid, FTX provided limited information on how Voyager customers could access the cryptocurrencies held by them. Information about crypto access will be shared as it becomes available, Voyager said.

Following the $1 billion-plus bankruptcy of cryptocurrency hedge fund Three Arrows Capital (3AC) on July 5, Voyager announced that the company would retain ownership of its assets while it restructured or sold the company. has filed for Chapter 11 bankruptcy to allow it to continue operating. Delinquent on a loan of $650 million.