FTX, the global cryptocurrency exchange operatortoday announced a joint offering with West Realm Shires, the owner and operator of FTX US, and Alameda Ventures, to provide early liquidity to clients of crypto brokerage platform Voyager, which filed for bankruptcy in New York earlier this month.
Under the joint proposal, Voyager customers would have the option of opening a new account with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims. Clients could withdraw their funds immediately or use them on the FTX platform.
No client is required to participate and participation in the joint proposal is entirely voluntary.
FTX hopes to complete the transaction as soon as possible, preferably in early August, subject to the requirements of the Chapter 11 process and the need for court approval.
Neither FTX nor the other participants in the joint proposal would acquire Voyager’s loans to Three Arrows Capital or related litigation.
The joint proposal provides that Voyager will pursue its rights with respect to Three Arrows Capital’s business and that any recovery would be available to fund additional distributions to customers, whether or not those customers open accounts with FTX.
“Voyager customers have not chosen to be bankrupt investors with unsecured debt. The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – one that allows clients to quickly get cash and recover some of their assets without forcing them to speculate on the results of bankruptcy and to take unilateral risks. .”
– Sam Bankman-Fried, CEO of FTX
The details of the offer are described in a letter to Voyager which may be see here (PDF).