Digital Assets: Sam Bankman-Fried Throws Bankrupt Voyager Digital’s Customers A Lifeline

July 25, 2022 | Digital Assets, Latest News, News
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FTX proposes to lend liquidity support to beleagured Voyager Digital customers – provided they open new accounts at FTX.

Crypto exchange FTX has thrown bankrupt crypto broker Voyager Digital (TSE: VOYG) a lifeline. Voyager halted user transactions on July 1, and entered bankruptcy proceedings soon after. FTX CEO Sam Bankman-Fried is offering Voyager a plan that could help save a sinking ship – customers may be able to withdraw their tokens and get a refund if they have funds remaining in their wallets. (AMBCRYPTO)

Voyager Digital customers can choose to accept the latest deal from FTX, which is subject to approval by the bankruptcy court. They would be able to open new accounts on the FTX platform with cash distributed out of their bankruptcy claims, and may also withdraw this cash immediately. Alternatively, they can use the money to trade digital assets on the FTX trading platform.

The deal is being offered by three entities linked to Bankman-Fried: FTX Trading Ltd., owner and operator of the FTX.com cryptocurrency exchange, West Realm Shires Inc., the owner and operator of FTX US, and Alameda Ventures Ltd.

“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims,” said Sam Bankman-Fried in a July 22 statement. “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.”

On the same day, Bankman-Fried’s tweet said he was willing to help Voyager’s customers. “Happy to do what we can to get liquidity to Voyager’s customers,” Bankman-Fried said.

In another move to mop up beaten down crypto assets, the crypto billionaire is said to be in advanced talks to acquire South Korean crypto platform Bithumb.

People with knowledge of the matter said anonymously that the two companies had been talking a deal for months. Bithumb said it could not comment on the matter. FTX did not respond to a request for comment.

As a part of the fallout from the Terra collapse, South Korean prosecutors raided various local crypto exchanges last week, Bithumb included.

Related Story: Bankman-Fried Founded FTX, The Crypto White Knight, May Raise Funds At $32B Valuation

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