A twist in the tale of Voyager’s bankruptcy with the newest court pleading surfacing today. The outcome for Voyager customers is a very sensitive topic in this case. Interestingly, FTX’s Sam Bankman-Fried argues that ‘this deal would secure 100% of the customers funds’, but representatives of Voyager Digital claim the deal is ‘misleading’. On top of that, Voyager’s lawyer team said the bailout deal would even ‘harm customers’.
Crypto platform Voyager Digital said a joint offer proposed by FTX and Alameda is a “low-ball bid” that disrupts the bankruptcy process, according to a court filing https://t.co/dFSBnvDMcQ
— Bloomberg Crypto (@crypto) July 25, 2022
Bankman Strikes Back
Soon after, Sam Bankman-Fried fired back, saying that the lawyers’ opinion is biased, as they are just looking to drain the rest of what little has left in Voyager for their fees. Mr, Bankman-Fried went as far as to say that it’s in the lawyer team’s best interest to drag out the court proceedings. Meanwhile, ‘customers get fucked’, – he concludes.
2) Let’s say that Voyager has, remaining, 75% of assets (I don’t know the exact number).
It seems like the first thing that should happen is that customers get back the 75%, and then later get back the rest if anything is recovered from 3AC.
But that hasn’t happened yet. Why?
— SBF (@SBF_FTX) July 25, 2022
In response to that, Voyager execs called Bankman’s buyout proposal a ‘lowball bid dressed up as a white knight rescue’. As if that wasn’t enough, Voyager blames FTX of tricks ‘designed to generate publicity’. On the other hand, Voyager didn’t agree to FTX & Alameda’s terms for the customers to be entitled to have a fixed amount on last working date.
The Contamination of Three Arrows Capital (3AC)
Another con in this deal for Voyager is the termination of its native token, VGX. If Voyager (VGX) is removed from the markets, the already insolvent company loses another $100 million. In addition with the $665 million defaulted debt by Three Arrows Capital (3AC), that’s over $765M of deficit that Alameda & FTX are not going to cover.
As the story goes, Three Arrows Capital (3AC) is fully aware of the Domino effect that their company’s collapse caused. After hiding from authorities, Three Arrows Capital (3AC) founders were detained by the authorities of Dubai, at an action-movie attempt to flee to Switzerland in a private jet. While on the run, the duo found the time to file a $30M lawsuit against their own company. Finally, the notorious pair broke the silence in an exclusive interview for Bloomberg.
After five weeks in hiding, the Three Arrows Capital founders spoke extensively about the implosion of their once high-flying hedge fund.
They say their crypto speculation unleashed cascading margin calls on loans that shouldn’t have been made https://t.co/IR6Ds86FLM
— Bloomberg Crypto (@crypto) July 22, 2022
On the Flipside
Celsius, another insolvent crypto platform, has managed to payback an enormous debt despite liquidity issuesWhy You Should Care
The outcome of this deal could directly impact the way customers’ funds are protected in this Chapter 11 bankruptcy case.
Lawsuits, zz_index, zz_top, FTX, Sam Bankman-Fried, Voyager DigitalRead More
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