FTX Proposes To Provide Liquidity To Voyager's Customers

Twitter icon  •  Published 2 weeks ago  •  Hassan Maishera

Sam Bankman-Fried’s FTX has submitted a new proposal that would allow Voyager Digital’s customers receive an early payout of their money.

FTX, one of the leading cryptocurrency exchanges in the world, has submitted a new proposal that would bail out customers of the Voyager platform.

The cryptocurrency exchange has proposed to assist Voyager Digital's clients by providing early liquidity. 

According to the company, the offer was made with West Realm Shires Inc, FTX US and Alameda Ventures.

While commenting on this latest development, Sam Bankman-Fried, the Co-Founder and CEO of FTX, pointed out that Voyager's customers did not choose to be bankruptcy investors holding unsecured claims. He said;

"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."

According to the terms of the proposal, a new account will be opened with FTX, and the account will be funded by a portion of the bankruptcy claims. Voyager Digital customers will have the choice to immediately withdraw the funds or use the capital to buy cryptocurrencies on the platform.

The FTX team added that no client would be forced to have an account with FTX and the proposal is only available to those interested in the offer. According to FTX, they want the deal to be closed as soon as possible and require court approval to make it happen. 

The team added that a motion for approval of the Agreement and the  Acquisition would be made before 3rd August 2022, and the court is expected to make a decision on or before 17 August 2022. 

Furthermore, Alameda Research is set to acquire all the digital assets and loans (with the exception of loans to 3AC and its affiliates). Once that is completed, FTX would proceed to distribute a share of the cash (from Alameda's acquisition) to clients that open an account at FTX.

FTX added that for the first 30 days, Voyager’s customers could purchase cryptocurrencies without any fees should they retain their FTX accounts after withdrawing their funds. 

According to the documents, FTX proposed that;

“1. with respect to Digital Assets, the Fair Market Value of such Digital Assets as of the second trading day immediately prior to the Closing Date or such other reference date as the parties may agree;

  1. with respect to customer information and exclusive referral rights with respect to customer accounts, US$15 million; and
  2. with respect to all other Acquired Assets, the cancellation of all amounts due under Alameda’s $75 million loan to Voyager Digital Holdings, Inc. (on-lent to Voyager Digital, LLC). The 'Fair Market Value of any Digital Assets will be calculated by Alameda in good faith based on market practice and available pricing information, subject to confirmation by the Sellers of the reasonableness of such determination.

If the parties cannot agree on the price of any specific Digital Asset, such Digital Asset shall constitute an Excluded Asset.”

FTX reviews within and outside the United States have been positive, and this could see many of Voyager’s clients retain their FTX accounts after withdrawing their funds. 

Also, the low FTX fees also mean that the cryptocurrency exchange is growing far more quickly than any other reputable crypto trading platform.

Bankman-Fried stated that FTX is ready to provide hundreds of millions of dollars to cryptocurrency companies that are currently struggling due to the current bear market.  

He added that he would like to see more companies provide similar capital assistance for companies in need. 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.

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