FTX, the global cryptocurrency exchange operator, today announced a joint offer with West Realm Shires, the owner and operator of FTX US, and Alameda Ventures, to provide early liquidity to customers of the crypto brokerage platform Voyager, which filed for bankruptcy in New York earlier this month.
Under the joint proposal, customers of Voyager would have the opportunity to start a new account with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims. Customers would be able to withdraw their funds immediately or use them on the FTX platform.
No customer is required to participate, and participation in the joint proposal is fully voluntary.
FTX hopes to close the transaction as promptly as possible, preferably in early August, subject to the requirements of the Chapter 11 process and the need for court approval.
Neither FTX nor other participants in the joint proposal would be acquiring Voyager’s loans to Three Arrows Capital or related litigation claims.
The joint proposal anticipates that Voyager would pursue its rights with respect to Three Arrows Capital matters and any recoveries would be available to fund supplemental distributions to customers, whether or not such customers open accounts with FTX.
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims. 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.”
– Sam Bankman-Fried, CEO of FTX
Details of the offer are described in a letter to Voyager which can be viewed here (PDF).
The post FTX proposes offer to open liquid accounts to users of bankrupt crypto brokerage Voyager appeared first on CryptoNinjas.
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