Billionaire Sam Bankman-Fried’s crypto exchange FTX and Alameda Ventures proposed an offer to buy all digital assets and crypto loans of Voyager Digital, which filed for bankruptcy early this month, other than its claims on hedge fund Three Arrows.
Under the proposal, FTX and Alameda also offered to provide early liquidity to customers of Voyager Digital, according to a joint statement Friday by FTX Trading, owner of crypto exchange FTX.com, West Realm Shires, the owner of FTX US, and Alameda Ventures.
Voyager customers could choose to start a new account with FTX and receive a cash balance equal to part of their claims with Voyager, according to the statement.
Specifically, Alameda proposed to purchase all of Voyager’s crypto assets and loans other than those to Three Arrows Capital, in “immediately available cash” at fair market value, according to the proposal. Such value will be “calculated by Alameda in good faith based on market practice and available pricing information,” with Voyager’s confirmation, the proposal noted.
Meanwhile, FTX will provide Voyager customers the ability to receive their share of such cash if they open an account with FTX. Customers may withdraw the cash immediately, or use them to purchase digital assets on FTX, according to the proposal.
FTX said it is looking to close the transaction as soon as possible, preferably in early August, subject to court approval and the Chapter 11 bankruptcy restructuring process.
FTX and Alameda are not interested in purchasing any Three Arrows-related claims owned by Voyager, they said in the proposal. A U.S. federal bankruptcy court has frozen the assets of Three Arrows Capital, the once-prominent crypto hedge fund that managed as much as $10 billion in assets until it fell into liquidation last month.
Alameda will also write off its own $75 million loan claim to Voyager as part of the proposed transaction, according to the proposal.