Voyager: ‘No Customer Will Be Made Whole’ Under FTX Proposal

FTX CEO Sam Bankman-Fried said his firm's offer would give Voyager customers back 100% of the remaining assets, while Voyager’s lawyers argue that it only benefits FTX.

AccessTimeIconJul 25, 2022 at 4:58 a.m. UTC

Lawyers representing bankrupt crypto lender Voyager Digital have responded to a proposal by FTX to offer early liquidity to Voyager customers by calling it a "low-ball bid dressed up as a white knight rescue" that only benefits FTX.

  • In a court filing, Voyager’s lawyers said the plan "transfers significant value to AlamedaFTX, and completely eliminates the value of assets that are of no interest to AlamedaFTX."
  • Under FTX’s plan, first proposed late last week, interested Voyager customers would be able to have an advance on their bankruptcy claims.
  • They could use this to buy more digital assets on FTX, or withdraw cash.
  • In a tweet thread, FTX's CEO Sam Bankman-Fried said that this would give Voyager’s customers the ability to access assets that would otherwise be locked up for a significant time as the case navigates through bankruptcy court.
  • "To clarify: Our offer would give Voyager customers back 100% of the remaining assets that Voyager has, including claims on anything recovered in the future," Bankman-Fried tweeted.
  • Voyager's lawyers, in the filing, wrote, “It seems clear, however, that AlamedaFTX’s Proposal, which was made in contravention of the proposed Bidding Procedures, was designed to generate publicity for itself rather than value for Voyager’s customers.”
  • “AlamedaFTX essentially proposes a liquidation where FTX serves the role of liquidator. The “fair value” of Voyager’s cryptocurrency assets and loans is subject to negotiation with AlamedaFTX,” the lawyers wrote.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Voyager: ‘No Customer Will Be Made Whole’ Under FTX Proposal

FTX CEO Sam Bankman-Fried said his firm's offer would give Voyager customers back 100% of the remaining assets, while Voyager’s lawyers argue that it only benefits FTX.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: BTC Falls Below $22.4K; Coinbase Shares Remain Alluring for Institutional Investors

Cathie Wood’s Ark Invest, ETF issuer Exchange Traded Concepts, Cullinan Associates and Utah-based Refined Wealth Management all significantly added COIN to their portfolios as per June 30 filings.

CoinDesk - Unknown
3
CoinDesk - Unknown
Accounting Rules Make the Outcome of Tesla’s Bitcoin Sale Unclear

After the car maker sold 75% of its bitcoin, Twitter piled on the company for losing money on the sale even though it didn’t.

CoinDesk - Unknown
4
CoinDesk - Unknown
How Bitcoin Can Support the Green Energy Transition

A new narrative for Bitcoin’s energy impact.

CoinDesk - Unknown