an offer to purchase out its digital assets from FTX and its investment arm Alameda Ventures, stating that the steps "are not value-maximizing" and may "harm clients."
Voyager's attorneys rejected the offer made public by FTX, FTX US, and Alameda on July 22 to buy out all of Voyager's assets and existing obligations - except the defaulted loan to 3AC - in a rejection letter submitted in court on July 24 as part of its continuing bankruptcy proceedings.
The letter states, "Making such proposals public might risk any other prospective acquisitions by undermining a coordinated, private, competitive bidding process,” adding that “AlamedaFTX breached various responsibilities to the Debtors and the Bankruptcy Court.”
Voyager executives suggested that their proposed strategy to rebuild the firm is superior since it will swiftly provide all of their clients' cash and as much of their crypto as feasible.
On July 5 , Voyager filed for bankruptcy in the Southern District of New York for insolvency valued more than $1 billion after crypto hedge fund 3AC defaulted on a $650 million loan from the company.
Three businesses linked to FTX CEO Sam Bankman-Fried proposed a deal on July 22 to Voyager in which Alameda would take all of Voyager's assets and utilize FTX or FTX US to sell and distribute them equally among users affected by the bankruptcy.
Bankman-Fried stated in FTX's news release that “his idea was a solution for Voyager customers to recover their losses and move on from the platform.”
In a Twitter thread on July 24, Bankman-Fried reiterated his company's justification for seeking to acquire Voyager. He claimed that Voyager's clients had "gone through enough," and that they should be able to retrieve their assets as quickly as possible because bankruptcy processes "may take years."
Voyager's attorneys stated on Sunday that the arrangement, which promises to make Voyager users whole, is basically just a liquidation of Voyager's assets in a way that benefits AlamedaFTX.
It also highlighted three ways in which the idea may "hurt consumers," including capital gains tax ramifications, arbitrarily restricting the value of each Voyager user's account at its July 5 value, and effectively eliminating the VGX token, which would immediately destroy more than $100M in value.
The letter further denied concerns that Alameda FTX had a better chance of winning acquisition bids because of continued contact between the two companies, stating: "Nothing could be further from the truth as indicated by this response."
Bankman-Fried has been at the heart of additional purchase conversations in the midst of a catastrophic bear market. On July 1, the CEO of another centralized crypto lender BlockFi, Zac Prince, negotiated an agreement for FTX to deliver $240 million in credit to the company, with a $640 million buyout option.
Read also: Cryptocurrency latest Update: How Does The FTX Voyager Joint Offer Give Customers The Chance To Liquidate?
