The attorneys for the bankrupt Voyager Digital responded to a buyout proposal by cryptocurrency exchange FTX to provide early liquidity to Voyager customers by labeling it “highly misleading” and harmful in a court filing.
The court filing notes that the proposal was a “low-ball bid dressed up as a white knight rescue” benefitting FTX itself.
“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX,” the filing adds.
In the proposal, FTX proposed a joint liquidity offer to Voyager Digital with customers of Voyager getting the chance to start a new account with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims.
Voyager’s bankruptcy attorneys claimed that FTX’s proposal was made more for self-promotion than it was for the benefit of the exchange’s clients.
The filing noted a list of reasons why the proposal “harms customers” while benefiting FTX exchange.
“By making its Proposal publicly in a press release laden with misleading or outright false claims, AlamedaFTX violated many obligations to the Debtors and the Bankruptcy Court,” the filing from the lawyers read.
FTX CEO Sam Bankman-Fried later posted a Twitter thread noting that “Anyway 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…”
Voyager Digital filed for bankruptcy just three weeks back. Even before that FTX’s subsidiary Alameda Research offered a credit line to Voyager but later in Voyager’s bankruptcy filing, it was revealed that Alameda actually owes $377M to Voyager.
