Voyager Claims FTX's Buyout Offer Was a "Low-Ball Bid," SBF Responds

Lawyers for the bankrupt cryptocurrency exchange Voyager Digital have publicly condemned FTX's takeover proposal as detrimental and dishonest, describing it as a "low-ball bid disguised as a white knight rescue."


In response to Voyager's response to the plan, FTX founder and CEO Sam-Bankman Fried stated that prolonging the proceedings would benefit only the bankruptcy lawyers, while customers would "get screwed."



The lawyers for Voyager Digital and FTX's Sam-Bankman Fried have publicly feuded over Voyager's bankruptcy.


In a court filing on Sunday, lawyers for the bankrupt cryptocurrency exchange Voyager Digital called a buyout plan by equity holder and competing firm FTX to guarantee quick liquidity to Voyager consumers "very deceptive" and detrimental.


"The AlamedaFTX proposal is nothing more than a cryptocurrency liquidation on a basis that benefits AlamedaFTX," Voyager responded. "It's a low-ball offer disguised as a white knight rescue."


In a news statement issued on July 22, FTX offered Voyager a plan in which Alameda Research would buy all of Voyager's crypto assets and loans and utilize them to give rapid liquidity to customers affected by the bankruptcy.


Customers of Voyager would be allowed to open FTX accounts and withdraw their part of the remaining assets in cash while keeping their rights and claims in the proceedings, according to the buyout plan.


According to FTX, this would allow Voyager clients to access the money immediately and avoid a bankruptcy case that could last years and expose them to risks.


However, in their reaction to the plan yesterday, Voyager's bankruptcy lawyers stated that FTX's suggestion was intended to generate publicity for the exchange rather than value for its clients.


"By announcing its Proposal publicly in a press release filled with deceptive or simply fraudulent assertions, AlamedaFTX violated many obligations to the Debtors and the Bankruptcy Court," the response said.


FTX founder and CEO Sam-Bankman Fried said on Twitter Monday in reaction to Voyager's response to the purchase bid that the only people who would benefit from prolonging the bankruptcy procedures would be Voyager's lawyers, not its customers.

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