The central theses
- Bankrupt crypto firm Voyager Digital says it is seeking court approval to allow users to access their funds.
- In an independent development, FTX has offered to allow Voyager customers to withdraw through their own platform.
- Voyager has an existing relationship with FTX and Alameda Research, but hasn’t said if it will accept the offer.
Share this article
Voyager and FTX have presented supplementary plans that could help users regain access to their account balances.
Voyager nearing withdrawals
Voyager suspended withdrawals on July 1st, leaving customers without access to their funds for three weeks.
Bankruptcy and reorganization proceedings could now give customers access to their account balances. Voyager says one of its recent filings is seeking court approval to allow customers to withdraw their funds.
These funds consist of USD balances held in For Benefit Of (FBO) accounts with the Metropolitan Commercial Bank.
Voyager said it plans to process user withdrawal requests as part of standard practice. However, that plan depends on the results of the next court hearing on August 4th.
The company also provided a financing update. It said it is asking the court for permission to sell Coinify, a company it acquired last year. It added that it had previously received court approval to pay employees and other operating costs.
FTX proposes joint payout plan
Alongside Voyager’s plans, FTX has offered to cooperatively allow withdrawals through its own platform.
Under this proposal, FTX sister company Alameda Research would purchase Voyager’s digital assets and digital asset loans for cash at fair market value.
Voyager users could then access their funds by opening an FTX account. This would be optional, and customers who choose to participate could withdraw their balance in cash without using FTX’s other services. Alternatively, users could continue investing in crypto with the first month’s fees being waived.
FTX differentiated its offer from Voyager’s plan, as outlined above, noting that it “recognizes[s] that Voyager may have other ways of providing liquidity to customers through FBO accounts and would include or exclude those accounts as appropriate.
FTX CEO Sam Bankman-Fried said that Voyager’s customers “did not choose to be bankruptcy investors with unsecured claims.” He explained that his offer was intended to “find a better way to handle an insolvent crypto deal.”
Bankman-Fried has previously come to the rescue of Voyager. In June, his other firm, Alameda Research, loaned Voyager $485 million in cash and crypto. This loan was granted after Three Arrows Capital (3AC) defaulted on a loan of similar value.
FTX has stated that its current offer would not include FTX acquiring any loans or litigation from Voyager related to Three Arrows Capital. It was said that Voyager would continue to monitor these matters itself.
FTX has requested a response by July 26 and says it intends to close the deal by early August. For its part, Voyager has not commented on whether it will accept the offer.
Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.
Share this article
The information on this website or information obtained through this website is obtained from independent sources which we believe to be accurate and reliable, but Decentral Media, Inc. makes no representations or warranties as to the timeliness, completeness or accuracy of any information on or through this website . Decentral Media, Inc. is not an investment advisor. We do not provide personalized investment advice or any other financial advice. Information on this website is subject to change without notice. Some or all information on this website may be or become out of date, incomplete or inaccurate. We have the right, but not the obligation, to update any information that is out of date, incomplete or inaccurate.
You should never make an investment decision about any ICO, IEO or any other investment based on the information on this website, and you should never interpret or otherwise rely on the information on this website as investment advice. We strongly encourage you to consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO or any other investment. We do not accept compensation in any form for analysis or coverage of ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.