The INX Digital Company (NEO:INXD) (INXATS:INX) (OTCQB:INXDF) submitted a bid as a letter of intent to purchase assets of bankrupt cryptocurrency exchange, Voyager Digital (OTC Pink VYGVQ) on Wednesday.
INX has steep competition as Wave Financial and Binance’s United States arm both recently launched bids for Voyager Digital’s assets. This comes shortly after the crypto exchange FTX, which had acquired Voyager’s assets in a USD$1.42-billion bid at an auction in September, declared bankruptcy following liquidity issues of its own.
“Our bid is a strategic next step in executing INX’s vision to democratize finance and reshape existing paradigms in the market by leveraging the power and versatility of its regulated trading platform,” said Shy Datika, CEO of INX.
The company is using its status as both a Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission-regulated (SEC) broker and cryptocurrency exchange with money transmitter licenses as qualifications for the asset acquisition.
Voyager sought bankruptcy protection earlier this year due to liquidity problems related to cryptocurrency hedge fund Three Arrows Capital (3AC). Voyager Digital’s subsidiary Voyager Digital LLC sent a notice of default to 3AC for failing to make the payments on its loan of 15,250 bitcoin and $350 million in USDC. Afterwards, the company took 3AC to court in the British Virgin Islands, which ordered 3AC to liquidate.
INX lines up for bankrupt cryptocurrency exchange assets
The INX Digital Company is the holding company behind the INX Group. It includes regulated trading platforms for digital securities and cryptocurrencies and combines traditional markets with a fintech approach. This is part of INX’s plan to become the preferred global regulated hub for digital assets on the blockchain.
The company’s INX.One platform allows trading, issuing, minting and instant settlement of security tokens and cryptocurrencies. Security tokens confer profit-sharing, voting rights and equity representation. Also, they are used for debt restructuring purposes and bankruptcy loss recovery.
INX became the first digital security IPO to be registered with the SEC. It closed with $83.6 million gross proceeds from more than 7,300 retail and institutional investors.
“As market structure continues to evolve on automated blockchain technology within the regulated environment, new digitized solutions will democratize finance and set the foundation for a revolution in innovative security solutions,” said David Weild, INX’s chairman of the board and former vice chairman & executive vice president at Nasdaq.