As was reported earlier, FTX has sent a proposal to Voyager Digital to effectively take over the company’s accounts while leaving the Three Arrows Capital (3AC) loans within the recovery process. FTX would open new accounts for remaining Voyager Digital account holders – potentially funding the accounts with an early distribution of bankruptcy claims if the court approves the action. The proposal is outlined in a letter from FTX’s counsel, Sullivan and Cromwell, and available here.
1) Voyager lost customer assets, but it still has the majority left.
Why haven't those been returned to customers yet?
Sad facts from a bankruptcy process.
— SBF (@SBF_FTX) July 25, 2022
Sam Bankman Fried, founder and CEO of FTX, took to Twitter yesterday to promote his company’s proposal. Bankman Fried asked why Voyager account holders have not received their funds yet even though significant assets remain:
“Well, the *traditional* process is that before customers get their assets back, they get fucked. First, there’s a long, drawn out process, during which funds are frozen. It can take years. Remember Mt. Gox? That process is *still going on*.”
While the courts meander through the Chapter 11 process, “bankruptcy agents are slowly bleeding the customers frozen assets dry,” states Bankman-Fried. Attorneys and consultants always get paid first. Bankman-Fried claims their offer is better for Voyagor clients but consultants “likely want the bankruptcy process to drag out as long as possible maximizing their fees.”
“Our offer would let people claim assets quickly. Or people who wanted to submit a lower bid–taking a large share of customer assets in the middle.”
The FTX offer aims to deliver 100% of the remaining assets back to Voyager account holders.
Some other members of crypto-Twitter have pointed out that Voyager is not too hot on the deal. It is not yet clear what portion of the 3AC is recoverable and what percentage of assets remain to fund account holders if the deal proceeds.
You have all heard the terms "hero," "bailout," "rescue," and "help" in reference to FTX saving distressed companies. Voyager, one of the aforementioned companies, disagrees – they think that SBF's deal is extremely predatory and will actually hurt customers even more. https://t.co/l726t4U4RR pic.twitter.com/NeARz3lRiP
— FatMan (@FatManTerra) July 24, 2022
