Recently, FTX, while partnering with West Realm Shires and Alameda Ventures, offered Voyager’s customers to start up a new account that will have a cash balance funded by an open distribution as per their portion Bankruptcy claims. This move will help the customers to fetch liquidity and hand on their bankruptcy claims while the proceedings continue.
Alameda Ventures said it would like to buy the entirety of Voyager’s digital assets and loans. As per the offer, FTX, Alameda, and West Realm Shires will purchase this in cash at market value. However, there is an exception- Voyager’s loan to Three Arrows Capital of $650 million will not be covered in the deal.
A letter that came from FTX and Alameda’s legal representatives highlighted that those customers who will not choose to create an account with FTX will be able to reserve all their rights in the bankruptcy proceedings but will not be able to get any early reimbursements.
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims,” SBF said in the press release.
“The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business — a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”
In an interview with CNBC on Friday, SBF said that FTX will be helping all the distressed crypto firms in their meek situation and will spend “hundreds of millions” to do so.
However, in a recent court filing, Voyager called FTX’s proposal a “low-ball bid dressed up as a white knight rescue.”
If Voyager’s customers accept this offer, FTX will help them to protect their digital clients from depreciation as currently, they do not have any access to those assets till the proceedings continue as reimbursements for those assets will be based on their value as of July 5th.
After opening up an account with FTX, the customers of Voyager Digital will be able to continue trading their crypto or cash out their accounts with immediate effect.