FTX Proposes Joint Plan to Offer Early Liquidity to Voyager Digital’s Customers in Bankruptcy Proceeding
FTX Trading Ltd., owner and operator of FTX.com, a leading global cryptocurrency exchange, today announced a joint offer with West Realm Shires Inc., the owner and operator of FTX US, and Alameda Ventures Ltd, to provide early liquidity to customers of Voyager Digital, LLC, which filed for bankruptcy in New York earlier this month.
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. Customers would be able to withdraw their cash immediately, or use it to purchase digital assets on the FTX platform. No customer is required to participate, and participation in the joint proposal is fully voluntary. FTX hopes to close the transaction as promptly as possible, preferably in early August, subject to the requirements of the Chapter 11 process and the need for court approval.
Neither FTX nor other participants in the joint proposal would be acquiring Voyager’s loans to Three Arrows Capital or related litigation claims. The joint proposal anticipates that Voyager would pursue its rights with respect to Three Arrows Capital matters and any recoveries would be available to fund supplemental distributions to customers, whether or not such customers open accounts with FTX.
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims,” says Sam Bankman-Fried, CEO of FTX. “The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”
Companies In This Post
- Newfront Appoints Former Marsh Leader as US Growth Leader Read more
- Kroo: Only UK current account to offer more than 3% AER interest on balances up to £85k Read more
- Banking Transformed Podcast: Global Trends that will Disrupt Finance in 2023 Read more
- Barclays sets out its flexible banking strategy Read more
- TD Announces Exclusive Strategic Relationship With CanadaVisa to Help Support Newcomers as They Establish Their Financial Life in Canada Read more