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Bankrupt Voyager rebuffs Sam Bankman-Fried's "low-ball bid"

Published 07/25/2022, 10:31 AM
Updated 07/25/2022, 10:44 AM
© Reuters. Voyager Digital logo and decreasing stock graph are seen in this illustration taken, July 7, 2022. REUTERS/Dado Ruvic/Illustrations

(Reuters) - Bankrupt crypto lender Voyager Digital said a recent joint proposal from FTX and Alameda Ventures was a "low-ball bid dressed up as a white knight rescue" and alleged the plan would disrupt its bankruptcy process.

Under the partial bailout plan announced on Friday, crypto trading firm Alameda would purchase all of Voyager's digital assets and digital asset loans, except the loans to bankrupt crypto hedge fund Three Arrows Capital.

Voyager's customers could then receive some of those funds if they chose to open an account with crypto exchange FTX. Such customers could either withdraw the cash balance immediately or use it to make purchases on FTX's platform.

Voyager, in a court filing dated July 24, said the proposal was "designed to generate publicity for itself rather than value for Voyager's customers".

"We submitted what we think is a generous proposal - we aren't taking fees on this, just letting customers get their remaining assets back promptly," Sam Bankman-Fried, the founder of FTX and Alameda, said in an emailed statement.

"It appears that Voyager's consultants are attempting to stall out the process, increasing their fees," Bankman-Fried added.

© Reuters. Voyager Digital logo and decreasing stock graph are seen in this illustration taken, July 7, 2022. REUTERS/Dado Ruvic/Illustrations

Voyager did not respond to a request seeking additional comment.

The company filed for Chapter 11 bankruptcy earlier this month. In June, it had signed an agreement with Alameda for a revolving line of credit.

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