Sunday, September 25, 2022

Crypto lender Voyager Digital rejects Alameda buyout offer over hidden agenda claims

Crypto lender Voyager Digital has outrightly declined the buyout offer from FTX’s investment arm Alameda Ventures. According to new reports, the lenders’ lawyers appear to have been aggrieved by the terms of the offer, as they claim users will benefit nothing from the proposed arrangement.

Voyager Digital files rejection letter

On July 22, FTX exchange had made a public offer to buy out all of Voyager’s digital assets and its outstanding loan. Although at the time, the offer excluded the lender’s defaulted loan to Three Arrows Capital (3AC). But now in response to the offer, the centralized crypto lender Voyager Digital Holdings has now rejected the offer. 

According to the filing, Voyager believes that going forward with the proposal will amount to harming the customers. Also, the rejection letter highlights how the public nature of the offer could ruin its chances of securing other deals. Summarily, the letter says: 

“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX. It’s a low-ball bid dressed up as a white knight rescue.”

Voyager also claims that its own proposed plan would work better seeing as it holds the customers’ interests as top priority.

SBF defends FTX’s approach

Meanwhile, defending the thoughts of FTX and Alameda to help Voyager Digital in this case, co-founder and CEO Sam Bankman-Fried (SBF) has issued a statement via a press release. SBF claims that all his firm is concerned about is how Voyager users could reclaim their losses and move on. He said in part:

“The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business.”

Furthermore, SBF added that bankruptcy proceedings can be very lengthy, sometimes taking years. And while Voyager Digital’s users have already gone through a lot, they shouldn’t still have to wait for that long to regain their assets.  

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