- Sam Bankman-Fried affiliates to provide early liquidity to Voyager clients.
- The joint proposal was for all the Voyager clients, except loans from 3ac.
- FTX attempts to secure the transaction by 17 August 2022.
Crypto firms co-founded by Sam Bankman-Fried proposed to purchase the digital assets of Voyager Digital, who filed for bankruptcy a week after the major crypto hedge fund Three Arrows Capital (3AC) had been reportedly liquidated amid the so-called ‘crypto winter’.
Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims.
Earlier this month, the beleaguered crypto brokerage firm Voyager Digital filed Chapter 11 bankruptcy and froze its customers’ assets after the company sustained a huge blow from its exposure to 3AC.
As per the in-court papers, Voyager was owed a total of $1.1 billion loan obligations and more than half of those is from 3AC, whose crypto investments went bad after Terra’s UST, Luna, and Grayscale Bitcoin plunged. As customer’s withdrawal couldn’t be met, Voyager decided to freeze all trading and withdrawal on July 1 via its platform.
The lawyers of FTX and Alameda wrote a letter to Voyager’s advisers at Kirkland & Ellis and Moelis & Co., saying that the transaction will allow Voyager’s customers to immediately receive a partial liquidity, along with the “opportunity to withdraw that liquidity or freely reinvest it in their choice of digital assets.”
The acquisition of digital assets and loans will be done with the help of Alameda Ventures. FTX then would issue a portion of the cash from Alameda’s acquisition to clients that open an account at FTX. However, loans to 3AC and its affiliates are excluded from this offer. If the Voyager users decided to remain at FTX rather than withdrawing their funds, these users could purchase cryptocurrencies without transaction fees for the first thirty days.
FTX emphasized that users are not forced to have an account. Adding that the offer is only for users that wish to “Obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”
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