FTX Proposes Joint Plan to Offer Early Liquidity to Voyager Digital's Customers in Bankruptcy Proceeding
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 Receive Immediate Liquidity and the Option to Signup with FTX
- Voyager Debtors Can Continue to Pursue Three Arrows Capital for Additional Recoveries
NASSAU, Bahamas, July 22, 2022 /PRNewswire/ -- FTX Trading Ltd. ("FTX"), owner and operator of FTX.com, a leading global cryptocurrency exchange, today announced a joint offer with West Realm Shires Inc., the owner and operator of FTX US, and Alameda Ventures Ltd, to provide early liquidity to customers of Voyager Digital, LLC ("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 cash immediately, or use it to purchase digital assets 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," says Sam Bankman-Fried, CEO of FTX. "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."
The details of the offer are explained in a letter to Voyager available at https://help.ftx.com/hc/en-us/article_attachments/7994471857044/FTX_Joint_Proposal_to_Voyager_Customers.pdf. The offer is currently non-binding, has not been accepted by Voyager and is subject to the execution of definitive documentation, court approval, and other conditions.
About FTX.COM
FTX.COM is a cryptocurrency exchange built by traders, for traders. It offers innovative products, including industry-leading derivatives, options and volatility products, tokenized stocks, prediction markets, leveraged tokens and an OTC desk. FTX.COM strives to be an intuitive yet powerful platform for all kinds of users, and to be the most innovative exchange in the industry. FTX.COM has grown quickly since its founding, becoming one of the most respected cryptocurrency exchanges in the world in 2 years.
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Media Contact
Jay Morakis
M Group Strategic Communications (on behalf of FTX)
[email protected]
646-859-5951
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SOURCE FTX Trading Ltd.
