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Voyager Digital Rejects FTX’s Restructure Plan Proposal - TheNewsCrypto

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thenewscrypto.com 25 July 2022 06:15, UTC
  
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  • Loans to the troubled hedge firm Three Arrows Capital would be immune from this.
  • Customers who don’t want to use FTX may nonetheless file bankruptcy claims.

Alameda Research and its affiliate FTX have offered to purchase Voyager Digital, but Voyager Digital has rejected the deal, calling it a “low-ball bid.”

CEO Sam Bankman-Fried of FTX presented a reorganization plan to Voyager, last Friday. Alameda Research, a trading business owned by Bankman-Fried, would acquire Voyager’s digital assets and digital-asset loans in cash market value under the proposed proposal. However, loans to the troubled hedge firm Three Arrows Capital would be immune from this.

Publicity For Itself Rather Than Value For Voyager’s Customers

In exchange, FTX would allow Voyager customers who opened an FTX account to collect their share of claim payments. Customers who don’t want to use FTX may nonetheless file bankruptcy claims to protect their rights and interests. However, FTX would provide these clients early access to the distribution of their claims.

On Sunday, July 24, Voyager’s legal team issued a statement:

“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”.

For Voyager, the offer from FTX and Alameda was “designed to generate publicity for itself rather than value for Voyager’s customers,” according to the company’s statement.

FTX’s bid undermines a competitive process, Voyager Digital argued in a court statement on Sunday. Furthermore, the deal does not include any consideration for Voyager’s intellectual property or its worth. Among other things, it overlooks the tax effects.

“Clear and intentional subversion of the bankruptcy process and the damages that may be suffered by customers and other creditors as a result,” said Voyager’s attorneys. The bankruptcy petition for Voyager was filed only a few weeks ago under Chapter 11. There has been a lot of interest from FTX in acquiring Voyager’s assets.

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