Struggling crypto lender Voyager Digital rejected FTX’s offer to buy all its assets and refund customers in a July 24 letter due to it being a “low-ball” offer that may “hurt customers.”

On July 22, FTX submitted a joint proposal that would have seen it provide liquidity for customers of the bankrupt crypto lender.

According to the proposal, the crypto exchange would purchase all of Voyager Digital’s assets at fair market value bar its $650 million loan to Three Arrows Capital (3AC).

Voyager users who choose to participate in the scheme would be able to open an FTX account that would have an opening balance of their claims against the bankrupt firm. These users can choose to withdraw these funds or use them to purchase crypto.

According to Sam Bankman-Fried, the proposal “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.”

Voyager lawyers have fired back at FTX’s public offer, saying it is “misleading” and could affect any potential deal.

Voyager revealed that it had filed a bidding motion procedure for how bidding should happen. The firm “will entertain any serious proposal made pursuant to the Bidding Procedures described in its Motion.”

The letter said FTX’s proposal was in contravention of the bidding procedure and was also designed to “generate publicity” for the SBF-led firm “rather than (add) value for Voyager’s customers.”

The strongly worded letter advised customers to read through FTX’s proposal so they can discern for themselves that it does not benefit them. According to the document:

“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. To anyone who reads the proposal even in a cursory way, it will be obvious that the stand-alone Plan that Voyager filed is capable of delivering far more value to customers than the AlamedaFTX proposal.”

The letter concluded that FTX violated its obligations to the Debtors and the Bankruptcy Court. But Voyager remains committed to the restructuring process and finding a “value-maximizing transaction that is beneficial to Voyager’s customers and stakeholders.”

FTX CEO Sam Bankman-Fried has responded to the letter stating why his firm submitted the offer.

1) Voyager lost customer assets, but it still has the majority left.

Why haven't those been returned to customers yet?

Sad facts from a bankruptcy process.

— SBF (@SBF_FTX) July 25, 2022

SBF questioned why Voyager has failed to refund customers’ assets since it still has a majority. According to him, the bankruptcy process could take several years, citing the example of Mt. Gox, which is yet to refund customers’ funds seven years after filing for bankruptcy.

SBF rationalized that while Voyager isn’t paying its customers, it is already losing money to bankruptcy as it has to pay all the consultants involved in the process

The FTX chief added that those opposing his proposal were the third parties involved rather than the affected customers.

The post Voyager rejects FTX’s ‘low ball’ offer, calls it ‘misleading’ appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

216 +