beincrypto.com
Embattled crypto lender Voyager Digital has rejected a joint offer from FTX and Alameda Research despite being cash-strapped and in the throes of bankruptcy proceedings.
Last week, FTX and Alameda caused a stir in the ecosystem by offering a restructuring deal to troubled Voyager. The deal would involve Alameda purchasing Voyager’s assets at market value with the exception of loans to Three Arrows Capital.
The other arm of the deal was an offer for Voyager’s customers to open accounts with FTX and receive their share of claims in the accounts, with Alameda Research canceling its loans to Voyager as part of the deal.
However, a recent court filing revealed that the legal team has rejected the offers from Sam Bankman-Fried’s companies. The rejection may have left disgruntled customers scratching their heads as they try to make sense of Voyager’s stance.
Voyager offer “a low ball” bid
The filing revealed that the offer from Voyager was a “low-ball bid” that sought to pass itself as a rescue operation. “The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX,” read the filing.
The team goes on to claim that the offer was designed to generate publicity instead of offering value to the customers and noted that such a frivolous offer could stifle the already complicated bankruptcy process.
Voyager confirmed that it remains open to “serious proposals” for a potential restructuring deal that benefits all relevant stakeholders. The firm filed for Chapter 11 bankruptcy protection at the start of the month, after it received a credit line from Alameda.
Sam Bankman-Fried believes offer is solid
Bankman-Fried reiterated his belief that the deal was a “generous proposal”, riding on the wave of previous deals. He claims that the rejection of the deal is a result of the consultants trying to milk the process to increase their fees.
In a lengthy tweet, Bankman-Fried likened the Voyager debacle to the Mt. Gox saga and predicted a long, drawn-out process that could take years before investors access their funds. He stated that the longer the process, the more options customers lose out on.
“Meanwhile, that entire time, various bankruptcy agents are slowly bleeding the customer’s frozen assets dry with consulting fees,” said Bankman-Fried. “This can cost customers hundreds of millions of dollars by the time all is said and done.”