After bankrupt crypto broker Voyager Digital rejected a proposal to buy out its assets and loans — except the loan to insolvent crypto hedge fund Three Arrows Capital — FTX CEO Sam Bankman-Fried (SBF) took to Twitter to lash out.
See related article: FTX proposes buying out Voyager assets and loans except for 3AC to provide early liquidity to customers
Fast facts
- In a long Twitter thread, SBF claimed that Voyager customers cannot get back their assets still left with Voyager until the bankruptcy process is over.
- Citing the example of defunct crypto exchange Mt. Gox, whose bankruptcy process is still ongoing after eight years, SBF said the bankruptcy process freezes customer funds and can take years to resolve.
- “Meanwhile, that entire time, various bankruptcy agents are slowly bleeding the customer’s frozen assets dry with consulting fees,” SBF wrote on Twitter. “This can cost customers hundreds of millions of dollars by the time all is said and done.”
- According to SBF, it is the bankruptcy consultants and people who want to bid lower for the customer assets that are against his buyout proposal.
- On Friday, FTX and related entities floated a proposal to buy out Voyager’s assets and loans in cash at the market price and enable its customers to get back the remaining assets with Voyager and maintain a claim against any future recovery from 3AC.
- However, in a court filing, Voyager turned down the proposal, calling it a “low-ball bid dressed up as a white knight rescue” and said that “no customer will be made whole” under the proposal.
See related article: Voyager crypto firm loaned US$377 mln to Sam Bankman-Fried’s Alameda Research