- FTX CEO Sam Bankman-Fried (SBF) in a Twitter thread disclosed that his rejected offer was only meant to help Voyager customers to recover their losses and move out of the platform.
- Voyager has reportedly made plans to reorganize the company and to promptly deliver all of its customers’ cash and cryptos as disclosed by a representative.
Crypto lending platform, Voyager Digital in a recent rejection letter filed in court denounced the public buyout proposal of FTX on the ground that it will harm its customers. Voyager’s lawyers also stated that the offer is not as juicy as it is claimed. According to them, it is just a liquidation of Voyager’s assets to the advantage of AlamedaFTX.
FTX CEO Sam Bankman-Fried (SBF) in a Twitter thread disclosed that the offer was only meant to help Voyager customers to recover their losses and move out of the platform. In his statement, he mentioned that the customers have suffered enough, and it is only appropriate for them to get their assets sooner as bankruptcy proceedings can take years.
Bankman-Fried has in a recent statement lashed out at the crypto lending platform, questioning why the majority of the customer’s assets have not been returned to them yet. According to him, they are merely trying to bleed customers’ money.
He explained:
Well, the *traditional* process is that before customers get their assets back, they get fucked. First, there’s a long, drawn-out process, during which funds are frozen. It can take years. Remember Mt. Gox? That process is *still going on*. Meanwhile, that entire time, various bankruptcy agents are slowly bleeding the customer’s frozen assets dry with consulting fees. This can cost customers hundreds of millions of dollars by the time all is said and done.
7) And meanwhile, Voyager’s consultants would be slowly draining the remaining funds by charging fees every month the bankruptcy process dragged on.
This didn’t seem right to us. Customers already lost assets; we didn’t want them to lose more.
— SBF (@SBF_FTX) July 25, 2022
The FTX offer is the safest bet if accepted: SBF
The FTX CEO explained in a scenario that supposing a customer holds 1 BTC on the platform at $30K, they can either get 1 BTC or $30K. Considering that the court proceedings can take years, customers may surely be at the losing end. In another scenario, he explained that assuming a customer holds $100 on the platform, a third party may decide to pay $10 for it and get whatever funds remaining.
Voyager’s consultants would be slowly draining the remaining funds by charging fees every month as the bankruptcy process dragged on. This didn’t seem right to us. Customers already lost assets; we didn’t want them to lose more.
Bankman-Fried also mentioned that his offer is the safest bet for customers as Voyager consultants are willing to drag the bankruptcy proceedings as long as possible. This will put customers in the right position to get their share of everything that remains according to him.
Voyager has reportedly made plans to reorganize the company and to promptly deliver all of its customers’ cash and cryptos as disclosed by a representative.
The crypto lending firm filed for bankruptcy earlier this month in the Southern District of New York for insolvency worth over $1 billion. This was after Three Arrows Capital (3AC), a crypto hedge fund defaulted on a $650 million loan from the firm.
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