Sam Bankman-Fried’s cryptocurrency empire has made a bid to buy the digital assets of Voyager Digital, which filed for bankruptcy earlier this month and froze customer accounts.
As part of his proposal, of Bankman-Fried Affiliates FTX and Alameda Ventures will allow customers to obtain liquidity for their Voyager accounts through new FTX accounts.
“According to this deal, of Voyager Clients will receive at least partial liquidity immediately, and an opportunity to withdraw or reinvest that liquidity freely in their choice of digital assets,” FTX and Alameda lawyers wrote in a letter to Voyager advisers Kirkland & Ellis and Moelis & Co.
Voyager said in court papers that it has $1.1 billion in total loan obligations it owes, including $654 million from hedge fund Three Arrows, which itself went bankrupt Crypto bets gone wrong, including those related to the collapse of the Terra/Luna stablecoin. As Voyager was increasingly unable to meet customer withdrawal demands, on July 1 it froze all trading and withdrawal activity on its platform.
Voyager’s lawyers said so Federal bankruptcy court in New York that it will propose an independent reorganization and a parallel process for the sale of the company or its assets. On Friday, Voyager said nearly 40 potential buyers had executed non-disclosure agreements to begin due diligence. It proposed a bid deadline of August 26 with an auction for it held three days later.
Bankman-Fried, according to his lawyer’s letter, wants to advance the process by requesting an initial response from Voyager by Tuesday, July 26 and signing a negotiated deal during the following weekend.
FTX and Alameda said the purchase of Voyager’s cryptoassets and the cryptoasset loans, with the exception of Three Arrows, will be purchased by Alameda “for immediately available cash at fair market value.” The second phase of the transaction will allow Voyager account holders to receive their share of cash in an FTX account where they can continue to invest in crypto.
“Customers are not obligated to register with FTX and this action will be completely voluntary. . . Any customer who does not wish to register with FTX will continue to maintain all of his rights and claims in the bankruptcy process, but will not receive early access to the distribution of his claim through FTX,” the letter states.
Bankman-Fried, a 30-year-old multi-billionaire, is already a crucial player in Voyager. Alameda borrowed $377 million worth of cryptocurrency from Voyager, the second largest loan after the loan extended to Three Arrows. Alameda also loaned $75 million to Voyager earlier this year when it ran into trouble. As part of its purchase offer, Alameda said it was willing to write off the loan. It also owned nearly a tenth of Voyager’s worthless Toronto-listed shares.
“Even clients who want to be ‘long’ cryptocurrencies should not be forced to do so by holding unsecured claims on a bankrupt company, at least not when there is an opportunity to get cash immediately,” the letter said.
FTX in joint offer to buy Voyager Digital’s assets Source link FTX in joint offer to buy Voyager Digital’s assets