The crypto exchange, FTX, has decided to help a sinking market player, Voyager. Sam Bankman-Fried, CEO of FTX, offered Voyager a rescue plan that may help the latter save its sinking ship. Voyager halted user transactions on 1 July. However, customers may have a chance to withdraw their funds and get a refund on their investments.
Customers on Voyager Digital finally have a rescue plan on the cards with the latest offer from FTX. Under this proposal, customers would have the option of being initially partly refunded of their locked-up amounts. They will be asked to open new accounts on the FTX platform and will be able to withdraw the cash immediately. They can even use the funds to trade digital assets on the FTX trading site.
The three companies involved in the proposed lifeline are linked to Sam Bankman-Fried. They are FTX Trading (which operates the crypto exchange FTX.com), West Realm Shires (the parent company of FTX US), and Alameda Ventures (the venture arm of Bankman-Fried’s Alameda Research).
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims. 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,” stated Bankman-Fried.
Despite the offer, FTX has claimed to stay away from all 3AC-related debt of Voyager. Voyager customers “can continue to pursue Three Arrows Capital for additional recoveries,” FTX Trading said. Alameda will also write off its own $75 million loans as part of the deal in place. Moreover, transaction fees will be waived off for a month for the customers.
Despite FTX trying to plan the entire process for a smoother transition, the plan must be approved by a bankruptcy court before being accepted by Voyager. Additionally, in a joint letter, the three companies requested the first response from Voyager by 26 July. This will enable FTX to have the documents ready by 30 July. Time is of the essence for Voyager and a decision must be taken immediately. This is further attributed to the uproar on social media from stranded investors who are still waiting for the funds.