Thursday, December 7, 2023

Sam-Bankman Fried and Voyager lawyers exchange volley of words.

There has been an exchange of a volley of words between FTX boss Sam-Bankman Fried and Voyager Digital’s lawyers over a buyout proposal. The lawyers of the bankrupt company called FTX’s offer of instant liquidity “highly misleading and harmful”. Voyager said the AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on the basis that advantages AlamedaFTX. Voyager described FTX’s offer as a low-ball bid dressed up as a white knight rescue.

FTX offered Voyager, as per a press release dated July 22, a deal that would see Alameda Research acquire all of Voyager’s crypto assets and loans and use them to provide instant liquidity to customers hit by the bankruptcy. As such, Voyager customers would have been able to open FTX accounts and withdraw their share of the remaining assets in cash, while retaining their rights and claims in the proceedings. This would give Voyager customers, as per FTX, a chance to immediately receive some liquidity and opt out of a bankruptcy proceeding that could likely go on for years. The customers would be exposed to more risks.

However, Voyager’s lawyers say FTX’s proposal was designed to generate publicity for itself than value for the exchange’s customers. They highlighted that by making the proposal publicly in a press release, FTX had violated many obligations to the Debtors and the Bankruptcy Court. The lawyers also listed reasons about the proposal was harmful to customers and only benefitted FTX.

Sam-Bankman Fried said the only party that would benefit from stretching the bankruptcy proceedings would be Voyager Digital’s lawyers and not the platform’s customers. He tweeted that in the traditional process the customers get f***. He believes various bankruptcy agents would bleed the customers dry with consulting fees. This could take up millions of dollars in costs by the time it’s all done.

Voyager Digital had filed for a Chapter 11 voluntary bankruptcy proceeding that allows the company to restructure and operate to eventually settle its obligations. The company was hit after Three Arrows Capital (3AC) defaulted on a $665 million loan.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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