fbpx

Voyager Rejects Buyout Offer from FTX Due to “Lowball” Attempt

  • Voyager filed for bankruptcy on July 6th, after Three Arrows Capital (3AC) defaulted on a $665M loan.
  • Last Friday, Sam Bankman-Fried and FTX made a public offer to buyout all assets under Voyager, except loans.
  • The fiery response released by Voyager’s legal team includes allegations of a “harmful” publicity stunt by FTX & Alameda.

The newest court plea to surface from Voyager’s bankruptcy has brought an interesting twist to the tale. The outcome is this case is particularly sensitive for Voyager customers. To explain,  FTX’s Sam Bankman-Fried argues that his proposed deal for FTX to purchase Voyager’s assets “would secure 100% of the customers funds”, but representatives of Voyager Digital have since claimed that the deal is “misleading”, going so far as to say that the bailout deal would even “harm customers”.

Bankman-Fried Strikes Back

Soon after the release from the Voyager legal team, Sam Bankman-Fried fired back, saying that the lawyers’ opinion is biased, and claiming that they are simply looking to drain the rest of what little Voyager has left for their fees. Mr. Bankman-Fried went as far as to say that it’s in the lawyers’ best interests to drag out the court proceedings. Meanwhile, “customers get f****d”, he concluded.

Voyager execs labelled Bankman’s buyout proposal a “lowball bid dressed up as a white knight rescue“. As if that wasn’t enough, Voyager also accused FTX of playing tricks “designed to generate publicity”. Needless to say, Voyager didn’t agree to the terms laid out by FTX & Alameda for customers to be entitled to a fixed amount on the last working date.

The Contamination of Three Arrows Capital (3AC)

Another alleged con in the proposed deal for Voyager is the termination of its native token, VGX. If Voyager (VGX) is removed from the market, the already insolvent company would be set to lose a further $100 million. In addition to the $665 million defaulted debt by Three Arrows Capital (3AC), that represents a deficit of over $765M that Alameda & FTX seemingly have no intention to cover.

As the story goes, Three Arrows Capital is fully aware of the Domino effect that their company’s collapse has caused. After hiding from authorities,the Three Arrows Capital founders were detained by local authorities in Dubai after an action movie-esque attempt to flee to Switzerland in a private jet. While on the run, the duo found the time to file a $30M lawsuit against their own company. The notorious pair finally broke their silence in an exclusive interview with Bloomberg.

On the Flipside

Why You Should Care

The outcome of the deal could directly impact the way customers’ funds are protected in this ‘Chapter 11′ bankruptcy case.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

Rate This Article
In order to improve, we give you the opportunity to rate DailyCoin content
Author

Tadas Klimasevskis is a blockchain journalist and content creator, focusing on the latest tendencies of the crypto world and digging deeper into specific innovations like music NFTs, gaming NFTs and Metaverse. Vast experience in social media lets Tadas quickly spot what’s going on in the crypto industry and deliver a story with a unique spin.