With several crypto firms dealing with bankruptcy, the CEO of FTX, Sam Bankman Fried [SBF], appeared as a knight in shining armor to some of these companies. SBF was showered with praises throughout crypto Twitter. This was considered rather bizarre as SBF’s Alameda Research owed Voyager money. Despite this, he extended a $500 million credit line to Voyager. This proposal, however, did not go as expected.
According to legal documents filed on Sunday, the lawyers representing Voyager noted that FTX’s proposal was a “low-ball bid dressed up as a white knight rescue.” Therefore, the firm went on to reject its proposal. This wasn’t all.
The fact that FTX made its offer public did not settle well with Voyager. As a result, the filing pointed out how taking offers as this public would risk other possible deals. With this, “AlamedaFTX violated many obligations to the Debtors and the Bankruptcy Court,” the lawyers said,
Voyager’s lawyers from Kirkland & Ellis LLP further suggested that the proposal made by FTX was formulated to generate publicity instead of aid Voyager’s customers.
In addition to this, Voyager believes that their very own proposal that would restructure the firm would aid its customers in recovering their cash and crypto.
SBF only has Voyager’s derailed customers in mind?
The legal representatives of Voyager bashed FTX’s proposal by suggesting that it “harms customers.” However, in a recent Twitter thread, SBF shed light on how Voyager customers had already been through a lot. Furthermore, bankruptcy proceedings could take years; therefore, FTX’s proposal could allow them to claim their assets at the earliest.
“Anyway: in the end, we think Voyager’s customers should have the right to quickly claim their remaining assets if they want, without rent seeking in the middle. They’ve been through enough already.”
The community was quick to throw backlash. Several suggested that SBF was here to attain monopoly, which further hurt the level of decentralization in the market. However, a few others defended the firm by saying, “Why would FTX make any offer that was not beneficial to FTX?”
Furthermore, Voyager is adamant about its decision against moving forward with FTX’s proposal. While the firm tries to figure things out, the customers are the ones that continue to suffer.