FTX and Alameda Offer a Liquidity Release Plan for Voyager Digital Customers
FTX Trading has announced a proposed plan with the American owner of FTX West Realm Shires Inc. and Alameda Ventures to provide early liquidity to Voyager Digital clients who have an interest in its bankruptcy case.
By participating, Voyager customers will be able to withdraw part of their claims to bankruptcy ahead of time by opening an account on FTX. The proposal is subject to court approval.
A company that owns and operates a popular cryptocurrency exchange FTX.com , proposed a plan that would allow Voyager Digital customers to immediately receive part of their requirements for the bankrupt company through its platform.
On Friday, FTX Trading announced that it is offering this option together with two other firms - the American owner and operator of FTX West Realm Shires Inc., as well as Alameda Ventures. The company outlined the details of the plan in a letter to Voyager.
Voyager Digital customers who have claims against the company will be able to immediately receive part of their funds by opening an account on FTX.com . According to FTX, participation is voluntary.
"In accordance with the joint offer, Voyager customers will have the opportunity to open a new FTX account with an initial cash balance funded by the early distribution of part of their bankruptcy claims," the press release says. FTX.com . Customers will be able to withdraw their money immediately or use it to purchase digital assets on the FTX platform."
The proposal is subject to approval by the bankruptcy court. FTX explained in its press statement that it hopes to close the deal as soon as possible, "preferably in early August." In a letter outlining Voyager Digital's proposal, FTX said it was requesting a first response from the firm by July 26 and "will strive to have the documentation finally ready for execution by Saturday, July 30."
"Voyager's customers did not want to be bankruptcy investors with unsecured claims," FTX CEO Sam Bankman-Fried said in a statement. The purpose of our joint proposal is to help find the best way to fulfill the obligations of an insolvent crypto business - a way that will allow clients to get early liquidity and return part of their assets without forcing them to speculate on the results of bankruptcy and take unilateral measures and risks."
FTX clarified in its statement that none of the companies offering the plan will purchase Voyager loans from Three Arrows Capital, and that Voyager's creditors "may continue to pursue Three Arrows Capital for additional refunds."
On July 5, three Voyager Digital businesses filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. These companies include Voyager Digital Holdings, Voyager Digital LLC and Voyager Digital Ltd.
https://coin-signal.com/cryptonews/ftx-and-alameda-offer-a-liquidity-release-plan-for-voyager-digital-customers/
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