FTX Trading Ltd. owner of crypto exchange FTX has announced a joint offer with West Realm Shires Inc., the owner and operator of FTX US, and Alameda Ventures Ltd, to provide early liquidity to customers of Voyager Digital (OTC: VYGVF).
What happened: The announcement comes after Voyager Digital filed for bankruptcy in New York earlier this month. Under the joint proposal, Voyager customers would be able to start a new account with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims.
Customers would be able to withdraw their cash immediately, or use it to purchase digital assets on the FTX platform.
"Voyager's customers did not choose to be bankruptcy investors holding unsecured claims," says Sam Bankman-Fried, CEO of FTX. "The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks."
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FTX says it hopes to close the transaction as quickly as possible, preferably in early August. The offer will be subject to the requirements of the Chapter 11 process, pending court approval.
FTX says that none of the participants in the joint proposal would be acquiring Voyager's loans to Three Arrows Capital or related litigation claims
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