FTX and Alameda Ventures Propose to Provide Early Liquidity to Voyager's Customers

FTX announced that it has proposed to assist Voyager Digital's clients by providing early liquidity. The offer was made with West Realm Shires Inc, FTX US and Alameda Ventures.

Sam Bankman-Fried, the Co-Founder and CEO of FTX said: "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: 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."

The proposal is to open a new account with FTX. The account will be funded by a portion of the bankruptcy claims. Clients will have a choice whether to immediately withdraw the funds or use the capital to buy cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term on the platform.

FTX highlights that no clients will be forced to have an account. The proposal is only for clients that are interested in the offer. FTX wishes to close the deal as soon as possible, which requires that court approval.

A motion for approval of the Agreement and the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term will be made on or prior to 3 August 2022. The court approval is expected to be on or prior to 15 August and the closing date on or prior to 17 August.

3AC Loans Are Excluded

Alameda Ventures will acquire all of the digital assets and loans (with the exception of loans to 3AC and its affiliates). FTX would then distribute a share of the cash (from Alameda's acquisition) to clients that open an account at FTX.

For the first 30 days, Voyager's clients can buy cryptocurrencies without any fees should they remain at FTX rather than withdrawing their funds.

In the submitted document, the purchase price will be composed of:

1. with respect to Digital Assets, the Fair Market Value of such Digital Assets as of the second trading day immediately prior to the Closing Date or such other reference date as the parties may agree;

2. with respect to customer information and exclusive referral rights with respect to customer accounts, US$15 million; and

3. with respect to all other Acquired Assets, the cancellation of all amounts due under Alameda’s $75 million loan to Voyager Digital Holdings, Inc. (on-lent to Voyager Digital, LLC). The 'Fair Market Value' of any Digital Assets will be calculated by Alameda in good faith based on market practice and available pricing information, subject to confirmation by the Sellers of the reasonableness of such determination.

If the parties cannot agree on the price of any specific Digital Asset, such Digital Asset shall constitute an Excluded Asset.

source: official letter to Voyager

Bankman-Fried said that FTX is prepared to provide hundreds of millions to crypto companies that are facing difficulties due to the downturn in the crypto markets.

He added that he would like to see more companies announce their intentions to provide capital for companies in need.