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FTX to buy the assets of crypto lender Voyager Digital

Voyager Digital said in a press statement late Monday Eastern time that exchange giant FTX had won the bidding war to purchase the assets of the insolvent company. A company that invests in digital assets, Wave Financial, was the competitor of FTX.

Following the news, Voyager Token (VGX) increased, rising 3.76% as of 04:17 UTC and trading at about 76 cents.

In July, the cryptocurrency lender Voyager Digital declared bankruptcy. Industry watchers have been closely scrutinizing Voyager's business procedures, notably the way the Canadian-listed company claimed in marketing materials that the Federal Deposit Insurance Corporation (FDIC) provided insurance to protect investors' money.

Although the FDIC insurance would safeguard bank-held cash deposits up to a maximum of $250,000, it would not cover money that has been converted to stablecoins. Author Frances Coppola claims that Voyager's loan book represented about half of its entire assets, and that loans to Three Arrows, which also filed for Chapter 15 bankruptcy in July, made up nearly 60% of that loan book.

On September 16, CoinDesk was the first to disclose that FTX was in the lead to purchase Voyager's assets.


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