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Voyager Digital Holdings Rejects Offer From FTX And Alameda Ventures

Voyager Digital Holdings, the centralized crypto lender, has rejected an offer from FTX and its investment arm Alameda Ventures to buy out its digital assets on the grounds that the actions “are not value-maximizing" and potentially "harms customers."

It has been reported that in a rejection letter filed in court on July 24 as part of its ongoing bankruptcy proceedings, Voyager’s lawyers denounced the offer made public by FTX, FTX US, and Alameda on July 22 to buy out all of Voyager’s assets and outstanding loans - except the defaulted loan to 3AC.

However, the letter states that making such offers public could jeopardize any other potential deals by subverting “a coordinated, confidential, competitive bidding process,” adding “AlamedaFTX violated many obligations to the Debtors and the Bankruptcy Court.”

The report said that Voyager’s representatives suggested that their own proposed plan to reorganize the company is better as they say it would promptly deliver all of their customers’ cash and as much of their crypto as possible.

Voyager filed for bankruptcy on July 5 in the Southern District of New York for insolvency worth more than $1 billion after crypto hedge fund Three Arrows Capital (3AC) defaulted on a $650 million loan from the firm.

Likewise, on July 22, the three companies tied to FTX CEO Sam Bankman-Fried offered Voyager a deal that would see Alameda would assume all of Voyager’s assets and use FTX or FTX US to sell and disperse them proportionally to users affected by the bankruptcy.

In FTX’s press release, Bankman-Fried said:

"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."

Thus, Bankman-Fried doubled-down on his firm’s reasoning for proposing to acquire Voyager in a Twitter thread late on July 24. He stated that Voyager’s customers have “been through enough already,” and should be able to claim their assets if they want them sooner than later because bankruptcy proceedings “can take years.”

Source: Cointelegraph



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