Voyager Says FTX’s Buyout Supply Was Deceptive “Low-Ball Bid,” SBF Fires Again

Commenting on Voyager’s response to the proposal, FTX founder and CEO Sam-Bankman Fried stated that solely the chapter attorneys would profit from dragging out the proceedings, whereas the purchasers would “get fucked.”

Voyager Lawers Slam FTX’s Buyout Supply

Voyager Digital’s attorneys and FTX’s Sam-Bankman Fried have entered a public spat over Voyager’s chapter.

In a Sunday courtroom submitting, the attorneys representing the bankrupt cryptocurrency trade Voyager Digital responded to a buyout proposal by the fairness holder and rival agency FTX to supply instantaneous liquidity to Voyager prospects by calling it “extremely deceptive” and dangerous. “The AlamedaFTX proposal is nothing greater than a liquidation of cryptocurrency on a foundation that benefits AlamedaFTX,” Voyager’s response learn. “It’s a low-ball bid dressed up as a white knight rescue.”

In a press launch printed July 22, FTX provided Voyager a deal that may see Alameda Analysis buy all of Voyager’s crypto property and loans—excluding loans to the bankrupt crypto hedge fund Three Arrows Capital—and use them to supply instantaneous liquidity to prospects affected by the chapter. Per the buyout proposal, Voyager prospects would be capable of open FTX accounts and withdraw their share of the remaining property in money whereas retaining their rights and claims within the proceedings. Based on FTX, this might give Voyager prospects an opportunity to instantly obtain some liquidity and decide out of a chapter continuing that might drag on for years and expose them to dangers.

Nevertheless, in yesterday’s response to the proposal, Voyager’s chapter attorneys stated that FTX’s proposal was designed to generate publicity for itself relatively than worth for the trade’s prospects. “By making its Proposal publicly in a press launch laden with deceptive or outright false claims, AlamedaFTX violated many obligations to the Debtors and the Chapter Courtroom,” the reply learn, additional outlining a listing of the reason why the proposal “harms prospects” whereas benefiting FTX.

Commenting on Voyager’s response to the buyout proposal on Twitter Monday, FTX founder and CEO Sam-Bankman Fried stated that the one get together standing to learn from stretching the chapter proceedings could be Voyager’s attorneys—not its prospects.

3) Properly, the *conventional* course of is that earlier than prospects get their property again, they get fucked.

First, there is a lengthy, drawn out course of, throughout which funds are frozen. It may possibly take years.

Keep in mind Mt. Gox? That course of is *nonetheless occurring*.

— SBF (@SBF_FTX) July 25, 2022

“Properly, the *conventional* course of is that earlier than prospects get their property again, they get fucked,” he stated. Versus simple liquidation, a restructuring course of might final and hold prospects’ funds frozen for years. Within the meantime, he stated, varied chapter brokers would bleed the purchasers dry with consulting charges, which might finally tally as much as tens of millions of {dollars} in prices by the point the process is completed. “The consultants, for example, doubtless need the chapter course of to tug out so long as potential, maximizing their charges. Our supply would let individuals declare property shortly,” he concluded.

Voyager filed for a Chapter 11—a kind of voluntary chapter continuing that permits the corporate to restructure and hold working to be able to finally settle its obligations—on July 6, after Three Arrows Capital defaulted on a $665 million mortgage from the trade. Three Arrows’ blowup created a ripple of liquidity crises and insolvencies all through the trade, severely hurting corporations like Celsius, blockchain.com, and the Digital Forex Group.

Disclosure: On the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.