About a month after suspending user withdrawals and filing for bankruptcy, embattled digital asset brokerage Voyager Digital said it was allowed to return $270 million in client funds. As for the asset acquisition offer proposed by the “rescue hero” Sam Bankman-Fried (SBF), Voyager bluntly stated that many companies have expressed their willingness to offer higher offers, and even slapped their faces without mercy, saying, “FTX is so far. The company with the lowest bid.”
SBF, the founder and CEO of digital asset exchange FTX, has boasted in the past that FTX has “billions of dollars” on hand that could be used to keep other struggling cryptocurrency companies alive, but later said otherwise , willing to “spend hundreds of millions of dollars” to bail out cryptocurrency companies.
He revealed last month that his trading company, Alameda Research, will acquire all of Voyager’s digital assets and digital asset loans at market prices in cash, excluding loans to Three Arrows Capital, while its cryptocurrency exchange FTX will be Voyager’s customers. Provides early liquidity, allowing clients to withdraw some of their funds by opening a new account with FTX.
In addition, FTX will acquire information, trademarks and other intellectual property of all Voyager Digital customers for $15 million. At the same time, FTX will also write off its $75 million loan claim against Voyager Digital.
However, Voyager Digital is dismissive of FTX’s proposal, believing that the other party’s offer is a “low-price bid” that disrupts the bankruptcy process and disrupts the competition process. Customers create value.
Voyager’s lawyer, Joshua Sussberg, said in court on Thursday that the company has received multiple offers, with FTX and Alameda Research among the lowest.
Voyager said it had received responses from as many as 88 stakeholders who were more than happy to help Voyager out of financial distress, including 46 potential buyers who had signed a non-disclosure agreement (NDA), adding that the company was working on a non-disclosure agreement. In “active discussions” with more than 20 potential stakeholders, it is expected to emerge from bankruptcy protection in the first quarter of next year.
Voyager to repay customers $270 million
Voyager believes customers have a right to get back $270 million in customer funds held in Metropolitan Commercial Bank accounts due to bankruptcy proceedings.
In response, U.S. Bankruptcy Court Judge Michael Wiles ruled that Voyager had provided “sufficient evidence” to support its arguments, and thus agreed to Voyager to refund some of its customers’ cash deposits.
Voyager is estimated to have more than 100,000 creditors, assets worth between $1 billion and $10 billion, and debts of $1 billion to $10 billion, according to Voyager’s bankruptcy filing.