Embattled crypto firm Voyager rejects FTX’s early payout proposal, says offer ‘highly misleading’ at best
Controversial 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 default by troubled crypto hedge fund Three Arrows Capital.
On Friday, the crypto exchange FTX and the trading company Alameda Research published a plan that would give Voyager customers the opportunity to pay 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 nature of the proposal “chills” the bidding process that the crypto brokerage firm started. Voyager says FTX’s plan is a “low bid” that does not maximize value for its customers.
“AlamedaFTX essentially proposes a liquidation in which FTX serves the role of liquidator. The ‘fair value’ of Voyager’s cryptocurrency assets and loans is subject to negotiations with AlamedaFTX. The proposal requires customers’ cryptocurrency claims to be converted into US dollars based on prices as of the 5th. July 2022 and that cryptocurrency claims are paid in US dollars, while customers bear the tax consequences of dollarizing and liquidating their claims.”
FTX CEO Sam Bankman-Fried fired back, referring to Voyager’s response as a “parade” of apologies. He argues that the stock exchange’s offer is designed to spare the brokerage house’s customers the arduous bankruptcy process.
“So, who’s against our offer? Well, it was voluntary – customers didn’t have to use it! But there are parties who *would* lose from that: third parties who want to take some of the customer funds as fees.
The consultants, for example, are likely to want the bankruptcy process to drag out as long as possible to maximize their fees. Our offering would allow people to claim assets quickly. Or people who wanted to put in a lower bid – to take a large share of their clients’ assets in the middle.”
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