- FTX won against a bid by digital asset investment company Wave Financial
- Voyager Token (VGX) gained almost 4% on the announcement
Leading crypto exchange FTX’s bid to purchase the assets of bankrupt crypto lender Voyager Digital won according to a press release by Voyager issued late on Monday, CoinDesk reported. There was just one other bid – that of digital asset investment company Wave Financial.
Voyager Token (VGX) gained just under 4% on the announcement. The token’s value appreciated around 04:00 UK time, reaching $0.76. It’s currently trading for $0.70 according to CoinMarketCap data.
Voyager lied about FDIC insurance
As Bankless Times wrote, Voyager Digital announced bankruptcy in July 2022. Even before that point in time, market watchers’ scrutiny of the lender’s business practices had been growing.
The company, which was listed in Canada, claimed the Federal Deposit Insurance Corporation (FDIC) insurance protected investors' deposits in marketing materials.
No coverage of stablecoins
FDIC insurance does not cover stablecoins converted from cash although it protects cash deposits of up to $250,000 held in banks.
Frances Coppola, quoted by CoinDesk, wrote that almost half of Voyager’s total assets were comprised by its loan book, of which almost two-thirds consisted of loans to Three Arrows Capital (3AC). 3AC also filed for Chapter 15 bankruptcy in July.