Beleaguered crypto brokerage firm Voyager Digital has rejected a joint offer proposed by crypto exchange FTX to provide its customers with early liquidity, calling it “a low-ball bid dressed up as a white knight rescue.”
FTX Offers Sinking Voyager a Lifeboat
Recall that FTX recently made a joint offer with West Realm Shires Inc., the operator of FTX US, and Alameda Ventures Ltd to provide early liquidity to Voyager customers.
Under the proposal, Alameda Ventures will buy all of Voyager’s assets and outstanding loans excluding the $670 million owed by Three Arrows Capital (3AC).
At the same time, Voyager customers will create new accounts with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims. While participation in the offer is voluntary, customers who accept it will be able to withdraw the cash immediately or use it to purchase other crypto assets on FTX.
Voyager Rejects FTX Proposal
In response to the proposal through a Sunday court filing, Voyager’s lawyers said:
“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue.”
The lawyers noted that Voyager will welcome any “serious proposal” made under the bidding procedures, but the offer by FTX and Alameda was “designed to generate publicity for itself rather than value for Voyager’s customers.”
They stated that FTX publicizing the deal might put all potential biddings at risk, adding that “AlamedaFTX violated various commitments to the Debtors and the Bankruptcy Court.”
On July 6, Voyager filed for Chapter 11 bankruptcy protection in New York amid the recent market downturn and failure to recover its million loans to 3AC. The filing follows a few days after the brokerage firm suspended withdrawals and redemptions, thereby denying customers access to their funds.
Voyager is not the only crypto-focused firm to go bankrupt amidst the recent bear market. Crypto lending firm Celsius Network also filed for bankruptcy protection in New York to continue with reorganization plans, a month after pausing withdrawals, swaps, and transfers between accounts.
Source: https://coinfomania.com/voyager-rejects-ftx-proposal/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=voyager-rejects-ftx-proposal