FTX is paying $51 million in cash for Voyager assets, court records show
Summary
Sam Bankman-Fried, FTXs founder, has pursued an aggressive buying spree across the crypto industry, snapping up deeply discounted assets in the wake of defaults, bankruptcies, and market tumult. It was not immediately apparent, based on filings, who would benefit from an earnout, which is often used in acquisitions as a way to incentivize founders and management teams of the company being purchased. Voyagers troubles emerged after the firm extended a loan valued at $670 million to crypto hedge fund Three Arrows Capital (3AC) in early 2022. When 3AC defaulted on its loan obligations in late June, it unleashed a financial cascade that pushed Voyager into bankruptcy and 3ACs founders into hiding. The $51 million price tag for Voyager and its associated claims would represent a steep discount, given FTXs assumption of customer assets and loan balances.