FTX and the Voyager counsel have to come to a mutual agreement and allow customers to choose on how they want to receive funds.
Earlier this week, crypto exchange FTX won the bid for acquiring assets of bankrupt crypto lender Voyager Digital. The acquisition for acquiring all of Voyager’s digital assets stood at $1.4 billion.
On Thursday, the Voyager counsel filed for a proposed order offering greater insight on the winning bid and the path forward for the customers. As per Thursday’s filing, $111 million of the total $1.4 billion will be in a cash payment. This will involve $51 million and an earn-out of up to $20 million. Additionally, there will also be a $50 million in account credit for customers who are willing to move to FTX’s platform and pass its know-your-customer process.
Speaking to Judge Michael Wiles on Thursday, the counsel for Voyager said that the agreement provides flexibility for customers to recoup their payments. They can receive their crypto either through FTX’s platform or in cash in case the tokens held by them are not supported by FTX. In the case that customers don’t sign up for FTX, Voyager would be responsible for distributing the assets. However, it’s unclear for now whether they would be in cash or crypto.
Voyager has been currently discussing with FTX counsel to outline the procedure for the plan. Next week, Voyager will file a disclosure statement revealing the finer details related to customer distribution. A hearing for the plan will happen next month on August 19. In Thursday’s hearing the Voyager counsel stated:
“We intend to provide creditors and customers with all the information that they need to understand how distributions will be made and in what amounts”.
Settling Over the Low-Bid Offer
In the early stages of the negotiation, FTX and the Voyager Counsel had a public squabble with Voyager calling it a low-bid offer. However, it seems that the two parties have come to a mutual agreement. In the filing on Thursday, the counsel said:
The final deal “provides substantially more value to the Debtors’ estates that the original offer. Due to this comprehensive marketing process and robust Auction, the Sale provides all creditors with significantly more value through the Sale than they would have received had the Debtors accepted FTX US’s original offer”.
There have been reports that after successfully acquiring Voyager’s assets, FTX is now looking to acquire assets of Celsius Networks. Reportedly, FTX is also looking to raise an additional $1 billion from the market.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Source: https://www.coinspeaker.com/voyager-digital-order-ftx/