Alameda offers to buy out Voyager Digital’s assets

What’s new? Cryptocurrency exchange FTX, jointly with its US unit, FTX US, and Alameda Ventures, proposed a plan to provide early liquidity to customers of the crypto broker Voyager Digital, which filed for bankruptcy in early July. Alameda Ventures said it would like to buy all of Voyager’s digital assets and loans except for liabilities to the bankrupt hedge fund Three Arrows Capital (3AC). The company has asked to respond to the offer by July 26 in order to get accelerated approval from the bankruptcy court and complete the deal by August 17.

Press release

How do the companies intend to proceed? Under the joint offer, Voyager customers will have the opportunity to open a new account with FTX with an initial cash balance funded by an early distribution of part of their bankruptcy claims. Customers will be able to withdraw their money immediately or use it to purchase digital assets on the FTX platform. Participation in the program is entirely voluntary.

The letter from the legal representative of FTX and Alameda Ventures explains that Voyager Digital customers who choose not to create an FTX account will retain their rights in the bankruptcy proceedings, but will not receive an early refund. It is noted that the adoption of the proposal will protect Voyager customers from the depreciation of frozen assets, as the refund will be based on their value as of July 5.

What else will FTX get with the purchase? In addition to buying Voyager Digital’s digital assets and loans at market value, FTX will acquire all of the company’s customer information for $15 million, as well as receive trademarks and other intellectual property. FTX will also write off its credit claims against Voyager Digital to the tune of $75 million. 3AC’s funds will still be subject to a refund from Voyager Digital and the fund’s customers will receive a separate refund regardless of the broker’s dealings with FTX.

Alameda Research, which is owned by FTX CEO Sam Bankman-Fried, previously, provided Voyager with two loans. In addition, Alameda owns an 11,56% stake in Voyager.

In mid-July, Voyager unveiled a plan to return fiat deposits to customers. They are held by the Metropolitan Commercial Bank of New York and, if the bank refuses to make them available, they can be reimbursed by the Federal Deposit Insurance Corporation (FDIC). The plan to recover cryptocurrencies, in turn, would require court approval.