Crypto exchange FTX launched a joint offer with West Realm Shires, which runs FTX.US, and Alameda Ventures, on Friday, which would allow bankrupt crypto lender Voyager Digital customers to get their hands on their bankruptcy claims in advance.
See related article: Voyager crypto refund plan unconfirmed; fiat to be returned in full
Fast facts
- Regarding the offer, FTX CEO Sam Bankman-Fried (SBF) tweeted, “happy to do what we can to get liquidity to Voyager’s customers,” while Alameda owes US$377 million to Voyager.
- As per the proposal, which requires court approval, FTX, Alameda, and West Realm Shires will purchase all loans and digital assets of Voyager in cash at market value, but will not assume Voyager’s exposure of around US$650 million to Three Arrows Capital, which was ordered to liquidate a few days before Voyager declared bankruptcy.
- According to a press release, Voyager customers can open a new account with FTX with an opening cash balance that will be funded against their bankruptcy claims.
- While participation in the offer is voluntary, Voyager customers who choose to use it will be able to withdraw the cash in the account immediately or use it to buy crypto on FTX, the press release said.
- “Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims,” SBF said in the press release. “The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business — a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”
- In an interview with CNBC on Friday, SBF further said that FTX is willing to spend “hundreds of millions” to help distressed crypto firms, but in a court filing, Voyager called FTX’s proposal a “low-ball bid dressed up as a white knight rescue.”
See related article: Voyager crypto firm loaned US$377 mln to Sam Bankman-Fried’s Alameda Research