Embattled crypto exchange platform Voyager Digital is rejecting FTX’s early buyout offer, according to new court documents.
Voyager filed for bankruptcy earlier this month, citing a massive $650 million loan default by the troubled crypto hedge fund Three Arrows Capital.
On Friday, crypto exchange FTX and trading firm Alameda Research published a plan that would provide Voyager customers the opportunity to cash out early and not wait for the conclusion of the bankruptcy proceedings.
In a new statement, Voyager calls the plan “highly misleading” at best, while arguing that the proposal’s nature “chills” the bidding process that the crypto brokerage firm initiated. Voyager says FTX’s plan is a “low-ball bid” that doesn’t maximize value for its 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 Proposal requires converting customer cryptocurrency claims into US dollars based on prices as of July 5th, 2022 and paying cryptocurrency claims in US dollars, with customers bearing the tax consequences associated with dollarizing and liquidating their claims.”
FTX CEO Sam Bankman-Fried shot back, referring to Voyager’s response as a “parade” of excuses. He argues that the exchange’s offer is designed to spare the brokerage’s customers from the arduous bankruptcy process.
“So, who’s against our offer? Well, it was voluntary – customers wouldn’t have to use it! But there are parties that *would* lose from it: third parties who want to take some of the customer assets as fees.
The consultants, for instance, likely want the bankruptcy process to drag out as long as possible maximizing their fees. Our offer would let people claim assets quickly. Or people who wanted to submit a lower bid – taking a large share of customer assets in the middle.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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