FTX Voyager Joint Offer Gives Customers Chance To Liquidate
Voyager customers could soon open a new FTX account and have an opening balance as part of a joint offer. According to an announcement made on Friday, the joint offer between FTX and Voyager provides for early liquidity to customers. Voyager had earlier this month filed for bankruptcy earlier this month due to its exposure to beleaguered hedge fund Three Arrows Capital. With over 100,000 creditors, the firm is estimated to have assets of more than $1 billion.
Voyager Customers Could Get Chance To Cash Out
As part of the joint proposal, the Voyager customers would be given a chance to withdraw their cash immediately. Instead, they can also purchase digital assets on the FTX platform, with these options made completely optional for the customers. However, the proposal is not ready for implementation before court approval. Also, FTX made it clear that it would not acquire Voyager’s loans to Three Arrows Capital.
“FTX hopes to close the transaction as promptly as possible, preferably in early August. This is subject to the requirements of the Chapter 11 process and the need for court approval. Neither FTX nor other participants in the joint proposal would be acquiring Voyager’s loans to Three Arrows Capital or related litigation claims.”
However, going forward, any recoveries made from Three Arrows would be directed towards customer returns, it said. This is irrespective of whether or not the Voyager customers open accounts with FTX.
‘Voyager Customers Not Bankruptcy Investors’
FTX CEO Sam Bankman-Fried said Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims. “The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business. In 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.”
Voyager’s bankruptcy filing mentioned that Alameda Research is its the largest unsecured creditor. Through Alameda, Sam Bankman-Fried committed to bailout Voyager with a $75 million credit.