Can Voyager customers get a refund? Here is the plan of FTX

Customers locked out of their accounts following Voyager Digital’s bankruptcy could get faster access to some of their receivables under a new proposal from FTX and Alameda Ventures.

The firms, both led by crypto billionaire Sam Bankman-Fried, announced the plan on Friday. Under the joint proposal, Voyager customers could open a new account with FTX with an opening cash balance funded by an early distribution of their bankruptcy claims. Customers could either withdraw the money immediately or use it to buy digital assets through FTX.

The plan would require approval from the bankruptcy court overseeing Voyager’s case. That would be optional for customers, the companies said, as some might prefer to pursue their claim in court.

Since crypto deposits lack the regulatory protections of traditional banks and brokerages, customer assets held by Voyager could be considered part of the company’s bankruptcy, as those customers only have a low priority to recover them as unsecured creditors.

“Voyager clients did not elect to be bankrupt investors holding unsecured debt,” Bankman-Fried said. “The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – one that allows clients to quickly get cash and recover some of their assets without forcing them to speculate. on the results of the bankruptcy and to take unilateral decisions. risks.”

In a letter to Voyager’s lawyer posted on fridayFTX and Alameda described the plan as requiring a two-pronged transaction:

Alameda will purchase all Voyager Digital Assets and Digital Asset Loans (other than Loans to Three Arrows Capital (“3AC”), described below) in immediately available cash at fair market value. Alameda would pay the cash value of Voyager’s digital assets in escrow; and FTX (or an applicable affiliate thereof) will offer Voyager customers who board with FTX the option to receive their share of such money in an account with FTX. Customers could withdraw their money without barriers or blockages or, if they wish, reinvest it in the digital assets of their choice. FTX would waive the first month of trading fees for Voyager customers who want to buy digital assets rather than withdraw their money.

Alameda would also rescind a $75 million loan claim. The company would not buy any claims related to collapsed hedge fund Three Arrows Capital, describing the ongoing Chapter 11 proceedings as “the best place to pursue collections related to Voyager’s loan to 3AC.”

Some customers have dollar balances held in accounts in the name of Voyager at the Metropolitan Commercial Bank. “We are open to including or excluding these accounts from the transaction, in the interests of clients,” the letter from FTX said.

FTX hopes to complete the transaction by mid-August, he said.

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