Embattled crypto lending platform, Voyager Digital has rejected the offer from the duo of FTX Derivatives Exchange and Alameda Ventures, calling the offer a “low-ball bid dressed up as a white knight rescue” that only benefits FTX.
FTX has sent an offer where it proposed to give the company’s customers access to 100% of the remaining assets locked on the Voyager Digital platform. Under the joint proposal, customers of Voyager would have the opportunity to start a new account with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims.
While FTX is proposing to close the deal as fast as August 11, it said its offer will still allow creditors being owned by Three Arrows Capital (3AC) to continue pushing for settlement.
As comforting as this deal sounds, Voyager Digital’s lawyers believe the deal only serves the interest of the crypto exchange behemoth. They argued that the plan “transfers significant value to AlamedaFTX, and completely eliminates the value of assets that are of no interest to AlamedaFTX.”
FTX CEO Makes a Case Justifying the Offer
With the backlash that trailed the offer from both Voyager Digital’s lawyers and observers in the ecosystem, FTX co-founder and Chief Executive Officer, Sam Bankman-Fried has come out to justify the bid.
According to him, bankruptcy proceedings typically take a lot of years to be settled, during which time the value of assets left on the platform could have been reasonably devalued. The FTX boss noted that in addition to this possibility, bankruptcy consultants will also be draining out the remaining funds in consultancy fees which will not be in the best interest of users who owns assets on the platform.
He said the situation ahead is not one that FTX is pleased about, that’s why it created an avenue by which users can claim some of their funds now while waiting on the balance if recovered from 3AC.
7) And meanwhile, Voyager's consultants would be slowly draining the remaining funds by charging fees every month the bankruptcy process dragged on.
This didn't seem right to us. Customers already lost assets; we didn't want them to lose more.
— SBF (@SBF_FTX) July 25, 2022
Besides Voyager Digital, FTX is also interested in BlockFi’s business, and both have signed an agreement that can lead to an acquisition. The trading platform also reportedly backed out of potential deal with the Celsius Network after seeing how bad the company’s balance sheet was.