FTX to Offer Early Liquidity to Customers of Bankrupt Crypto Lender Voyager

The crypto exchange will allow the customers to create accounts funded by an early distribution of a part of their bankruptcy claims.

AccessTimeIconJul 22, 2022 at 8:39 p.m. UTC
Updated Jul 22, 2022 at 9:19 p.m. UTC

Cameron Thompson is a news reporter at CoinDesk.

Crypto trading platform FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital.

The joint proposal comes two weeks after Voyager filed for Chapter 11 bankruptcy. Alameda Ventures, a company controlled by FTX CEO Sam Bankman-Fried, had previously given a loan of $200 million in cash/USDC and 15,000 bitcoins to Voyager.

  • FTX is working with West Realm Shires, the company that owns FTX.US, and Alameda Ventures to allow Voyager customers to create new accounts on FTX, the crypto exchange said in a press release on Friday.
  • Voyager customers who take the offer will have an opening cash balance funded by an early distribution on a portion of their bankruptcy claims, FTX said. They would be able to withdraw the cash immediately or use it to purchase digital assets on FTX. Voyager customers won't be required to participate in the plan.
  • “The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks,” Bankman-Fried said in the press release.
  • FTX also said it won't purchase Voyager’s loans to hedge fund Three Arrows Capital, which also filed for bankruptcy this month, as part of the plan. And FTX expects that any recoveries from those loans would be available to fund supplemental distributions to Voyager customers, regardless of whether they opened an account with FTX.
  • FTX plans to complete the transaction in early August. The exchange didn't immediately respond to requests for more information.

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Cameron Thompson is a news reporter at CoinDesk.

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Cameron Thompson is a news reporter at CoinDesk.

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