In a court filing, Voyager Digital LLC said the joint offer from Alameda and FTX is a low-ball bid. The crypto platform filed for bankruptcy and feels the bid derails the process.
Sam Bankman-Fried publicly offered the crypto platform a restructuring deal on Friday. Alameda, the trading firm of Bankman-Fried, said it would buy out all the digital assets of Voyager. It will also take over its digital asset loans under the plan, excluding the loans given to Three Arrows Capital. The all-cash deal will be at market value. Bankman-Friend’s crypto exchange, FTX, will also offer Voyagers’ customers to receive their claims by opening an account on FTX.
In response to the bid, the legal team of Voyager said that the proposal of Alameda FTX only gives them advantages, and it is nothing more than liquidating the cryptocurrency of Voyager. Sunday’s court filing terms response offers a “low-balled bid in the garb of rescue by White Knight.
Voyager is ready to entertain a serious proposal from anyone made under the bidding process. However, Alameda and FTX are meant to generate more publicity for themselves, and the offer had no value for the existing clients of Voyager as per their statement.
As per Bloomberg News, Voyager said that the offer from Bankman-Fried undermined a competitive bidding process. They showed that the Voyager platform had no value and ignored its intellectual property, tax consequences, etc.
Bankman-Fried, on the other hand, said they offered a generous proposal in an emailed comment. He said that it looks like the lawyers of Voyagers want to stall the acquisition and increase their fees.
Bankman-Fried says he has concerns for the customers of Voyager who lost their money and are awaiting what is left to be returned.
The lawyers of Voyager said in the filing that they reserve the right to proceed against Alameda and FTX, and they may avail the remedies for the intentional subversion of the bankruptcy process. The lawyers said Voyager’s creditors and customers might suffer due to this bidding by Bankman-Fried.
Voyager filed for bankruptcy proceeding under chapter 11 earlier this month. Alameda is a major shareholder, lender, and borrower of Voyager, and they had given a fresh line of credit to Alameda a few weeks earlier.
The proposal by FTX has an offer for those customers of Voyager who did not want to sign up with them. These customers retain their rights to the claims under the bankruptcy proceedings; however, they will not have early access under distribution done through FTX.
