🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.