FTX offers to save Voyager customers in a common liquidity proposal
FTX offers to save Voyager customers in a common liquidity proposal
- Voyager customers is given the opportunity to get liquidity and to register with FTX
- customers can also withdraw their cash immediately or use it to buy digital assets on the FTX platform
Customers of the bankruptcy crypto loan Voyager was thrown into a leash by the digital asset exchange FTX that offered to provide them with liquidity at an early stage.
As part of a joint proposal from FTX and West Realm Shires-owner and operator of FTX US and Alameda Ventures-voyager customers can demand part of their funds that were invited more than three weeks ago. It is not clear how much every customer can withdraw.
According to an explanation on Friday, customers have to open a new account at FTX in order to obtain cash credit, which is financed by premature distribution of part of their bankruptcy claims.
Customers can also withdraw their cash immediately or use digital assets on the FTX platform, according to the stock exchange.
It marks the latest aggressive step for the stock exchange- which has stepped in to help silent crypto companies that have come into the latest lending and liquidity crisis that affects the entire industry.
The stock exchange recently made an agreement to take over the struck lender Blockfi for up to $ 240 million and agreed to buy Bitvo and Embed Financial in early June.
The step also takes place when Alameda Research-founded by FTX CEO Sam Bankman-Fried-Voyager lent $ 500 million last month to relieve its market problems and alleviate financial stress."Voyager's customers have not decided to be insolvency investors who keep unsecured claims," said Bankman-Fried in the explanation. "The aim of our joint proposal is to find a better way to handle an insolvent crypto business - a way that enables customers to get liquidity at an early stage and to reclaim part of their wealth without forcing them to speculate on bankruptcy results and to act unilaterally."
At the beginning of this month, Voyager reported insolvency in accordance with Chapter 11 less than a week after the suspension of the trade and the withdrawals. Voyager became the youngest lender in the industry, which was obtained from the collapse of the Three Arrows Capital based in Singapore.
The stock exchange expects to complete its offer for Voyager customers by the beginning of August, which is subject to the requirements of insolvency proceedings according to Chapter 11 and judicial approval.
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The Post FTX offers for saving Voyager customers in a joint liquidity proposal is not a financial advice.