In a recent report, FTX sent 50,000 Ethereum worth about $65 million to Voyager Digital’s main wallet. The CEO of Nansen, a blockchain analytics firm, Alex Svanevik, confirmed the transaction in a tweet.
Due to the crypto winter, some crypto firms struggled with insolvency. This bearish market even pushed some crypto companies off the industry. Some companies even massively slashed their staff strength, while others stopped operations. Coinbase is amongst the firms that dropped 20% of its employees due to liquidity issues.
But among the companies that later halted operations is Voyager Digital. A source noted that the company stopped all transactions on its platform, including withdrawals, deposits, and rewards. Also, it later filed for Chapter 11 bankruptcy in July.
As Voyager threw open its door for asset auctioning last month, FTX emerged as the winner. By outbidding its competitor, Binance, FTX acquired about $1.4 billion worth of Voyager assets. The company has subsequently transferred some funds to the crypto lending firms.
FTX Transfers 50K Ethereum Without Court Approval
Recently, Voyager Digital declared an auction to sell its assets attracting several firms, including the crypto exchange, Binance. However, FTX US outbid other firms on September 26 and won the acquisition of Voyager assets.
The FTX US is to receive crypto assets valued at $1.4 billion for the completion of its acquisition. Voyager is expected to present the asset purchase agreement with FTX US for the necessary approval. The presentation was slated for October 19 to the US Bankruptcy Court for the Southern District of New York.
But without the court’s approval of the asset purchase agreement, FTX transferred 50K ETH to Voyager. The transfer is suspected to be linked to the $1.4 billion asset acquisition. This includes $60 million in earn-outs, incentives, and an extra $51 million cash payment.
Regulators Object To Asset Acquisition Amid FTX Token Dump and Pump
Some regulatory bodies have raised objections to sell Voyager assets to FTX US. These include the Texas State Securities Board and the Texas Department of Banking.
According to reports, the regulators are investigating FTX US, FTX Trading, and some executives, including the CEO Sam Bankman-Fried. The watchdogs cited that they offer unregistered securities to US residents.
Additionally, the regulators think FTX US provides yield-bearing accounts similar to Voyager’s yield-bearing depository accounts.
Also, FTX is restricted through the objection in limiting the Debtor’s liability. Finally, following the FTX transfer of 50K ETH news, the FTX token, FTT, has experienced a dump and pump effect.
Featured Image From Pixabay, Charts From Tradingview