Voyager Rejects Alameda’s Buy Back Proposal Because It “May Harm Customers”
Centralized crypto lender Voyager Digital Holdings has rejected an offer from FTX and its investment arm Alameda Ventures to buyout its digital assets on the grounds that the actions “are not value-maximizing” and potentially “harms customers”.
Voyager refused the offer from Alameda
Voyager’s attorneys rejected the offer made public by FTX and Alameda on July 22 to buy out all of this company’s assets and outstanding loans – with the exception of the defaulted loan to 3AC – in a rejection letter submitted to the court on July 24.
The letter claims that by undermining “a coordinated, private, competitive bidding process,” making such proposals public could put any other prospective deals in danger. It further adds that “AlamedaFTX violated various commitments to the Debtors and the Bankruptcy Court.”
The representatives of Voyager made the argument that their own suggested strategy to restructure the business is preferable since it would swiftly provide all of their clients’ cash and as much of their cryptocurrency as feasible.
As updated in a Coincu News article, in FTX’s press release, Bankman-Fried said that his proposal was a way for Voyager users to recover their losses and move on from the platform.
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims. The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business.”
In addition, in the most recent series of tweets, the CEO of FTX also reiterated this plan when explaining to customers how Voyager’s bankruptcy process can be lengthy and cause loss of their assets when they are repaid.
However, arguments from Voyager’s lawyers pointed out 6 harms that the proposal would bring, including capital gains tax consequences, unfairly capping the value of each Voyager user’s account at their July 5 value, and the effective elimination. of the VGX token, which would “destroy in excess of $100 million in value immediately.”
“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Voyager Rejects Alameda’s Buy Back Proposal Because It “May Harm Customers”
Centralized crypto lender Voyager Digital Holdings has rejected an offer from FTX and its investment arm Alameda Ventures to buyout its digital assets on the grounds that the actions “are not value-maximizing” and potentially “harms customers”.
Voyager refused the offer from Alameda
Voyager’s attorneys rejected the offer made public by FTX and Alameda on July 22 to buy out all of this company’s assets and outstanding loans – with the exception of the defaulted loan to 3AC – in a rejection letter submitted to the court on July 24.
The letter claims that by undermining “a coordinated, private, competitive bidding process,” making such proposals public could put any other prospective deals in danger. It further adds that “AlamedaFTX violated various commitments to the Debtors and the Bankruptcy Court.”
The representatives of Voyager made the argument that their own suggested strategy to restructure the business is preferable since it would swiftly provide all of their clients’ cash and as much of their cryptocurrency as feasible.
As updated in a Coincu News article, in FTX’s press release, Bankman-Fried said that his proposal was a way for Voyager users to recover their losses and move on from the platform.
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims. The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business.”
In addition, in the most recent series of tweets, the CEO of FTX also reiterated this plan when explaining to customers how Voyager’s bankruptcy process can be lengthy and cause loss of their assets when they are repaid.
However, arguments from Voyager’s lawyers pointed out 6 harms that the proposal would bring, including capital gains tax consequences, unfairly capping the value of each Voyager user’s account at their July 5 value, and the effective elimination. of the VGX token, which would “destroy in excess of $100 million in value immediately.”
“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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