Crypto Exchange Crosstower Eyes Buying Distressed Crypto Firms Alongside Voyager

Key Takeaways

  • The exchange is reportedly looking for crypto firms with a “good balance sheet” and a “good set of customers” to acquire.
  • CrossTower is also working on a revised offer for the assets of bankrupt Voyager Digital.

Crypto exchange CrossTower, which is currently bidding for the assets of bankrupt Voyager Digital, is also considering acquiring other crypto companies. According to the latest Bloomberg report, CrossTower CEO Kapil Rathi has expressed his interest in acquiring other crypto firms, including Voyager.

Rathi is reportedly on the lookout for firms with a “good balance sheet” and a “good set of customers” to acquire. Kristin Boggiano, CrossTower President, also revealed that the exchange had “minimal exposure” to the now-bankrupt FTX.

As per reports, the exchange is also looking to set up a rescue venture fund along with several of its backers. According to the CEO, CrossTower has no plans to contribute to Binance’s recovery fund to support troubled crypto projects.

CrossTower has been in the race to acquire the assets of troubled crypto lender Voyager Digital for a few months. In September, FTX won the Voyager bid, with the sale valued at $1.4 billion. Following FTX’s announcement earlier this month to file for bankruptcy, Voyager said it had now reopened the bidding process for the company and is in active talks with alternative bidders.

CrossTower was quick enough to come up with a new revised offer to acquire assets of bankrupt Voyager Digital. Asset manager Wave Financial is also working on a new offer after participating in the previous auction.

While CrossTower is yet to reveal any details on its latest bid for Voyager, the company president Boggiano stated that Voyager’s small $3 million FTX investment wouldn’t be a major deterrent in a potential sale for the lending platform. CrossTower has proposed keeping the existing Voyager platform and app, indicating that customers wouldn’t have to switch platforms once the potential acquisition is completed. CrossTower’s acquisition plan would also see the exchange share its revenue with Voyager users for several years.

Boggiano further emphasized that CrossTower has adopted a cautious approach toward acquisitions and is focused on highly transparent and compliant firms. “There’s an opportunity in this market to provide a compliance-focused platform and to bring the transparency and trust that people have been hoping for,” he said.rossTower is a small US-based cryptocurrency trading platform that was founded in early 2020, targeting retail and institutional traders.

Saniya Raahath
Saniya Raahath

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