Bankrupt Voyager Rejects Buyout Offer From Sam Bankman-Fried's FTX, Alameda

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Voyager Digital Ltd VYGVQ has rejected an offer from Sam Bankman-Fried-owned firms FTX and Alameda Research to jointly buy out the bankrupt firm. 

What Happened: In a rejection letter filed on behalf of Voyager on July 24, the firm’s lawyers said that Alameda and FTX’s proposal is “highly misleading” and actually harms customers.

“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue,” stated the lawyers.

Voyager’s legal council also said that it “seems clear” that the Alameda-FTX proposal was “designed to generate publicity for itself rather than value for Voyager’s customers.”

Why It Matters: Last week, FTX and Alameda proposed a joint plan to offer bankrupt Voyager’s customers a way to obtain early liquidity and access to funds.

In order to make this possible, the firms said they would buy all Voyager Digital’s crypto assets and loans except those made to Three Arrows Capital (3AC).

In a Twitter thread early on Monday, Bankman-Fried said that the offer would give Voyager customers back 100% of the remaining assets that the firm has, including any future claims recovered.

“Hopefully customers are allowed to choose it if they want,” he said.

Price Action: The cryptocurrency market fell 1.5% over the last day to $1.01 trillion. At press time, Bitcoin BTC/USD was trading at $22,000, down 1.8% over the last 24 hours. Ethereum ETH/USD was trading at $1,523, down 2.47% and Dogecoin DOGE/USD was trading at $0.064, down 4.58% over the same period.



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Image and article originally from www.benzinga.com. Read the original article here.