FTX crypto exchange has decided to rescue Voyager, the sinking player in the crypto space. FTX CEO Bankman-Fried provided Voyager a resurrection plan that could aid the latter from deteriorating.
Voyager suspended user transactions on July 1. Nevertheless, customers could cash out their money and receive investment refunds.
Ready to Sail?
Voyager Digital customers eventually see a rescue plan following the recent offer by FTX exchange. The proposal would see investors enjoying the chance of receiving refunds on their locked investments.
Users will need to sign up for new FTX accounts to complete withdrawals within no time. Moreover, they can use the money to trade crypto on FTX’s trading site.
Sam Bankman-Fried relates with the three firms involved in this lifeline proposal. They include FTX Trading (operating the cryptocurrency exchange FTX.com), Alameda Venture (the venture branch of Alameda Research by Bankman-Fried), and West Realm Shires (FTX US’s parent company).
Bankman-Fried stated that Voyager’s clients didn’t opt to be bankruptcy players with unsecured claims. He revealed that the proposal’s objective is helping to ensure a lucrative option to rescue an insolvent cryptocurrency business.
That would allow individuals access to early liquidity and regain a part of the assets without speculating on insolvent outcomes & resort to one-sided risks.
Despite this offer, FTX admitted staying away from Voyager debts associated with Three Arrows Capital. FTX Trading stated that Voyager customers might continue pursuing 3AC for further recoveries. Moreover, Alameda will write off its $75M loans due to the deal. Also, customers will not incur transaction charges for one month.
Despite efforts by FTX to plan for smoother transitions, the strategy requires approval by an insolvent court before Voyager accepts the deal. Moreover, a joint letter had the three firms requesting the initial Voyager response by July 26.
That would allow FTX to prepare the documents by July 30. Time remains crucial for Voyagers, and an immediate decision is paramount. Moreover, the social media uproar from stranded market players still waiting for their withdrawals suggests quicker moves.
What are your opinions about FTX’s plan to rescue Voyager? You can comment below.