Reasons for refusing bankruptcy filings by Voyager and FTX - Coinnounce
Voyager Digital, a crypto asset (cryptocurrency) investment platform that filed for bankruptcy in the United States, submitted a document to the court on the 24th, rejecting the takeover offer by the cryptocurrency exchange FTX and its investment division, Alameda Ventures.
Voyager is applying for Chapter 11 of the Federal Bankruptcy Code, and the documents were prepared as part of that process.
In this document, a lawyer on the Voyager side said that Alameda and FTX’s proposal was “only to liquidate crypto assets (virtual currency) on favorable terms for both companies, and the (single) reconstruction plan submitted by Voyager is better. It’s in the interest of customers.”
In response, Alameda and FTX released a press release on the 22nd with a proposal to support withdrawal to Voyager’s customers. In this document, Voyager criticized the public release of the proposal as destroying the “confidential competitive bidding process.”
Reason For Refusal Of The Proposal
In addition, Voyager pointed out that Alameda and FTX are considering a “double trading structure.” After purchasing Voyager’s crypto assets and crypto loans at “fair market value,” transfer the crypto to both companies’ accounts.
According to Voyager, when distributing assets in US dollars, customers must pay capital gains and other taxes on the distribution, diluting the amount collect4ed.
In addition, Alameda and FTX continued proposing that clients based on cryptocurrency investment be capped at the US dollar value of their assets as of July 5.
In addition, the two companies’ proposals explained the possibility of damaging customer assets for a total of six points.
FTX Sam CEO Claims
FTX’s Sam Bankman-Fried tweeted a series about Voyager’s allegation on the 25th. FTX’s and Alameda’s proposal says 8it will allow Voyager customers to regain their assets.
Sam mentions Mt. Gox’s bankruptcy proceedings. He pointed out that the client’s assets have been frozen for years, and various consultants are deducting fees.
7) And meanwhile, Voyager’s consultants would be slowly draining the remaining funds by charging fees every month the bankruptcy process dragged on.
This didn’t seem right to us. Customers already lost assets; we didn’t want them to lose more.
— SBF (@SBF_FTX) July 25, 2022
As cryptocurrency lenders such as Voyager and Celsius continue to go bankrupt, CEO Sam said yesterday that he could “make some unfavorable transactions” to keep the industry healthy.
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