Cryptocurrency

FTX Liquidity Offer a ‘Low-Ball Bid, Dressed Up as a White Knight Rescue’: Voyager Digital

The recently bankrupt crypto lending firm has rejected the proposed FTX bailout.

Cryptocurrency

FTX Liquidity Offer a ‘Low-Ball Bid, Dressed Up as a White Knight Rescue’: Voyager Digital

The recently bankrupt crypto lending firm has rejected the proposed FTX bailout.

In an ongoing situation that has found FTX the borrower, lender, and investor of recently bankrupt Voyager Digital — the exchange has now offered to help provide liquidity for users who have their funds frozen on the crypto lending platform. However, Voyager declined the offer calling it a “low-ball bid dressed up as a white knight rescue.”

In a press release Friday, July 22, FTX proposed a joint plan to offer early liquidity to the crypto lender’s customers who have had their funds frozen for weeks now.

“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims,” said FTX CEO Sam Bankman-Fried, adding that “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.”

However, Voyager has stated that it views the FTX offer as having a very different agenda and said “it seems clear that AlamedaFTX’s Proposal, which was made in contravention of the proposed Bidding Procedures, was designed to generate publicity for itself rather than value for Voyager’s customers.”

The bankrupt lender went on to express its frustrations with FTX making the bidding process public, stating that it could undermine a coordinated, confidential, and competitive bidding process — with a chance of preventing or scaring off bids from competitors.

Defending his company, Bankman-Fried said “we’ve made our offer, hopefully customers are allowed to choose it if they want. If not guess it’s up to the consultants to ensure prompt liquidity.”

The 30-year-old billionaire also clarified on Twitter that the offer would give Voyager customers back 100% of the remaining assets that Voyager currently has and would also include claims to anything recovered in the future.

In other news, NFT social platform GALLERY has curated the digital art collection of imploded crypto hedge fund 3AC.

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