Today, Voyager Digital said that it is seeking court clearance to enable withdrawals on its defunct cryptocurrency platform. In the meanwhile, FTX has recommended a unified disengagement strategy.
Voyager and FTX have proposed complementary approaches to assist account holders to regain access to their funds.
On July 1, Voyager banned withdrawals, preventing consumers from accessing their accounts for three weeks.
Bankruptcy and reorganisation processes may provide clients access to their account balances. According to one of Voyager’s most recent filings, the company wants judicial clearance to enable consumers to withdraw their assets.
These funds are USD balances in For Benefit Of (FBO) accounts at Metropolitan Commercial Bank. Voyager said that it intends to handle withdrawal requests in the usual manner. This proposal is contingent on the outcome of the next court hearing on August 4.
The company also offered an update on finances. It said it is seeking approval from the court to sell Coinify, a firm it bought last year. It noted that the court has previously authorised payment of staff and other operational expenses.
FTX Propose a Joint Withdrawal Strategy
Alongside Voyager’s intentions, FTX has promised to facilitate withdrawals through its platform. Alameda Research, a subsidiary of FTX, would acquire Voyager’s digital assets and digital asset loans at fair market value in cash.
Users of Voyager would subsequently be able to access their money by creating an FTX account. Customers who choose to join could withdraw their balance in cash without utilising any of FTX’s other services. Alternately, customers might continue investing in cryptocurrencies with no transaction fees for the first month.
FTX differentiated its offer from Voyager’s proposal by saying that it “recognize[s] that Voyager may have additional means to provide consumers with liquidity” through FBO accounts and that it would include or omit these accounts as needed.
Sam Bankman-Fried, the chief executive officer of FTX, said that Voyager’s clients “did not select to be bankruptcy investors with unsecured claims.” He added that the purpose of his offer is to “create a better method for resolving an insolvent crypto firm.”
Bankman-Fried has rescued Voyager in the past. His second business, Alameda Research, lent Voyager $485 million in cash and cryptocurrency in June. After Three Arrows Capital (3AC) failed on a similar-sized loan, this loan was issued.
FTX has said that its current offer does not include the acquisition of debts or legal claims from Voyager relating to Three Arrows Capital. It was noted that Voyager would pursue these problems on its own.
FTX has sought a reply by July 26 and plans to finalise the transaction by early August. On the other hand, Voyager has not said whether it will accept the offer.