Cryptocurrency lender Voyager Digital Holdings has rejected an offer from FTX and the Alameda research investment fund led by Sam Bankman-Fried to buy back its digital assets on the grounds that the actions are not maximize value and potentially harm the customer.
In a letter of refusal filed with the court on July 24 as part of an ongoing bankruptcy proceeding, Voyager’s attorneys denounced the offer made public by FTX, FTX US, and Alameda on July 24. 22 July to purchase all of Voyager’s assets and outstanding debts.
The letter said that making such offers public could jeopardize any other potential deals by disrupting a confidential, coordinated, competitive bidding process.
Voyager reps suggested that their own proposed plan to reorganize the company would be better as they said it would quickly distribute all customer cash and their cryptocurrencies.
Voyager filed for bankruptcy on July 5 in the Southern District of New York for more than $1 billion in insolvency after crypto hedge fund Three Arrows Capital (3AC) defaulted on a 650 loan. million dollars from the company.
On July 22, FTX CEO Sam Bankman-Fried offered Voyager an arrangement where Alameda would take all of Voyager’s assets and use FTX or FTX US to sell and distribute them proportionally to users affected by the bankruptcy.
Bankman-Fried says his proposal is a way for Voyager users to recoup their losses and move to the platform:
Voyager customers don’t want to be bankrupt investors. The goal of our joint proposal is to help establish a better way to deal with an insolvent crypto business.”
Bankman-Fried further confirmed his determination to acquire Voyager in a Twitter thread late on July 24. He stated that Voyager customers have “been through enough” and can claim their assets soon. if they want to because bankruptcy proceedings can take years.
Voyager’s attorneys argued that Bankman-Fried’s intention was to make all Voyager users, essentially just liquidating Voyager’s assets on a basis in favor of FTX.
“AlamedaFTX’s proposal is nothing more than to liquidate cryptocurrencies on a basis in their favor. It was a low auction disguised as a white knight rescue. “
Bankman-Fried, has been at the center of buyback talks lately amid the ongoing bear market. On July 1, another crypto lender, BlockFi, also signed an agreement for FTX to send $240 million in credit to the company,
with a buyback option totaling $640 million.