The FTX crypto exchange of Sam Bankman-Fried may have been hailed as the savior of crypto companies suffering from the crypto winter, but not all is well. Its acquisition stream comes with a twist, as FTX was accused of low-balling one of its bailout offers.
Voyager Digital calls out FTX’s offer
FTX had put forward a rescue deal for crypto broker Voyager Digital, which has recently filed for bankruptcy because of the market conditions. But, the brokerage is unhappy with the deal and called it a low ball bid that has been dressed up to appear as a white knight. The crypto broker said saw in a filing in bankruptcy court on Sunday Night in the Southern District of New York.
Voyager claimed in the documents that the offer that FTX has made, along with Bankman-Fried’s other company Alameda Research, is only meant to generate publicity for the companies and not for offering the Voyager customers any value.
The bankrupt crypto broker further added that the way they had made the proposal through a press release could also put the bidding process of its assets in jeopardy, as they are conducting it privately. According to the documents, the AlamedaFTX proposal is just liquidation of crypto on a basis that benefits AlamedaFTX.
On July 5th, Voyager Digital filed for bankruptcy and while doing so, the company also outlined a plan of how it intends to reorganize the firm and help investors in recovering their money. However, the company has also been considering alternative proposals and has had discussions with about 80 third-party investors.
Moreover, it also asked potential buyers to express their interest in the company by Friday. It should be noted that Voyager is just one of the companies that FTX has taken an interest in. The crypto exchange has also talked of other distressed crypto companies as well. In fact, it had acquired Bitvo, the Canadian exchange in the previous month and is now in the process of taking over troubled crypto lender BlockFi.
Voyager’s court claims
The crypto brokerage outlined the numerous issues it has with the proposal of Alameda and FTX in the new filing. It alleged that the crypto exchange had ‘openly disparaged’ the company and had made misleading statements in its press release.
One sticking point for Voyager is the assertion of FTX and Alameda that the company’s customers would be entitled to receive a fixed amount, depending on the value of the assets in their wallets on July 5th. This is when Voyager filed for bankruptcy protection.
However, Voyager is not in favor of this proposal, as it has a different plan for reorganizing and it does not intend to impose a cap on the claims of its clients. Furthermore, the bailout deal would also eliminate the VGX token of the platform, which would result in $100 million worth of losses, as per Voyager’s calculations.
Some other problems include the tax burdens that customers would be expected to bear on withdrawals and confusion about FTX’s claims that Voyager does not have any brand value.