FTX CEO brings “sad facts from a bankruptcy process”
- FTX founder Sam Bankman-Fried took to Twitter to discuss the recent Voyager Digital deal that the exchange had struck
- The billionaire claims that he wants the users of the bankrupt exchange to get their money back as soon as possible
Crypto exchange platform FTX founder and CEO, Sam Bankman-Fried has recently expressed his views on the situation of the troubled Voyager Digital and suggested how the company can still offer clients some of their funds back early.
SBF’s other trading firm, Alameda Ventures, and FTX, want to suggest to Voyager’s customers a method to start a new FTX account along with opening a cash balance funded by an early fund distribution on a portion of their bankruptcy claims. Alameda Ventures stated that it would seek to purchase all Voyager digital assets and digital asset loans in order to achieve this goal, with the exception of debts to Three Arrows Capital (3AC).
To explain this in more detail, the American entrepreneur took the matter to Twitter. He explained why Voyager is not able to return its customers the funds it has in its hands.
“Let’s say that Voyager has the remaining 75% of assets. It seems like the first thing that should happen is that customers get back the 75%, and then later get back the rest if anything is recovered from 3AC.”He stated the ideal scenario
However, it is not as simple a process as it seems, according to him. SBF said that fund distribution in a bankruptcy case is a long, drawn-out process, and during this time, the funds get frozen. Meanwhile, the consulting bodies drain customers’ frozen funds from the bankruptcy agents.
He then went on to discuss his offer. If approved, any Voyager customer who wants their share of everything that remains can get that “as soon as possible,” with no fees or additional haircut.
“Our offer would give Voyager customers back 100% of the remaining assets that Voyager has, including claims on anything recovered in the future.”SBF said.
Moreover, Friday’s letter from FTX and Alameda Ventures’ legal representative further clarified that the customers who do not choose to create an FTX account would have legal rights in the bankruptcy proceedings; however, they would not get early reimbursement.
In the tweet from earlier today, SBF also talked about the people who would probably be against his offer. According to him, there are parties that would lose from the offer, which mainly include third parties like consultants who “want to take some of the customer assets as fees.” They allegedly want to drag the bankruptcy process as long as possible to maximize the fees.