On Friday, Sam Bankman-Fried’s companies FTX, FTX.US and Alameda Ventures made a joint offer for some of the assets of Voyager Digital, which is currently in Chapter 11. Voyager Digital was impacted by a $650 million loan to Three Arrows Capital (3AC) which went bankrupt. While the Alameda/FTX offer would allow Voyager customers to access some cash quickly, Voyager’s lawyers argue that it favors FTX and Alameda more. “It’s a low-ball bid dressed up as a white knight rescue,” said Voyager’s lawyers Kirkland and Ellis in a response.
FTX would take the current crypto balance, convert it to dollars as of the bankruptcy date on July 5, and distribute it on the FTX platform proportionately to Voyager clients. Customers can withdraw the cash or re-invest in crypto.
The white knight pointed out that with the ongoing bankruptcy proceedings, customers are still exposed to downside crypto price risk. However, Alameda/FTX emphasized urgency, and it’s worth noting that as of today, Alameda/FTX would be making a quick 10% profit on the $1.3 billion of assets on the Voyager platform at that date. On Friday, the figure would have been closer to 15%, presenting a winning position for Alameda/FTX. Does anyone want to bet whether Alameda has hedged the price?
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
