Voyager lawyers criticized Alameda’s offer to buy out the company’s assets

Representatives of the crypto broker added that making it public jeopardizes other potential deals at risk and could harm customers

25.07.2022 - 06:45

381

2 min

What’s new? Lawyers at Kirkland & Ellis, who represent the bankrupt crypto broker Voyager Digital, criticized a proposal from the FTX exchange and Alameda Ventures to buy back the platform’s digital assets and loans. They said that the proposal could harm customers because making it public would jeopardize other potential deals and violate the competitive and confidential trading process. Voyager’s representatives added that their own reorganization plan is better because it would allow for a quick return of funds to customers.

Voyager’s response

Response of the FTX head. The head of FTX and Alameda Sam Bankman-Fried has defended the proposal. He argues that the companies are trying to give Voyager’s customers the opportunity to regain access to frozen funds while the cryptocurrency broker goes through a complicated bankruptcy proceeding, as it “can take years.” Of course, FTX will benefit in doing so, as the deal will require customers to open accounts on the exchange, he added.

1) Voyager lost customer assets, but it still has the majority left.Why haven't those been returned to customers yet?Sad facts from a bankruptcy process.— SBF (@SBF_FTX) July 25, 2022

Voyager situation. On July 1, the broker announced a temporary suspension of all operations and filed for bankruptcy in New York on July 6. Its alleged assets were between $1 billion and $10 billion, liabilities were estimated in a similar range, and the number of creditors exceeded 100 000. In mid-July, Voyager unveiled a plan to return fiat deposits to customers. They are held by the Metropolitan Commercial Bank and, if the bank refuses to make them available, can be reimbursed by the Federal Deposit Insurance Corporation (FDIC).

Author: