FTX presented a project to make Voyager users get a part of their funds back. FTX has been working to assist struggling crypto entities to get back on their feet. Voyager intends to acquire court approval to classify users who housed cash in the entity.
Bankrupt crypto lender, Voyager, may restart withdrawals in a combined effort with FTX as it proceeds with the re-building process.
FTX Trading Ltd proposed a joint project to Voyager Digital that will bring users the possibility of acquiring early liquidity through FTX and recovering a substantial piece of their funds.
The proposal allows Voyager customers to open a new profile on FTX and will get an opening cash balance that represents a piece of their bankruptcy claim.
They can choose to withdraw the funds immediately or employ them to purchase cryptocurrencies on FTX. However, this proposal is voluntary, so customers may choose not to carry out this activity.
However, participants in the joint proposal will not receive Voyager loans to Three Arrows Capital, and funds recovered from the debt have to get spent on funding more customer refunds.
FTX CEO Sam Bankman-Fried spoke about the joint proposal. He said Voyager’s customers did not choose to become bankruptcy investors dealing with unsecured claims.
Sam also said this proposal intends to help establish a better method to resolve an insolvent crypto deal. This method would allow users to acquire early liquidity and reclaim a substantial piece of their funds without forcing them to speculate on bankruptcy outcomes and take other risks.
Voyager is about to Respond
Meanwhile, Voyager is yet to accept the proposal. FTX placed a deadline for response and desires to close the deal in early August. Even if Voyager says yes, it would still be subject to other procedures, including court approval.
Voyager obstructed withdrawal procedures on July 1 and opted for bankruptcy a few days later. But the entity has also brought constant updates on its restructuring process, stating that the next court hearing got planned for August 4.
Voyager explained that they know that users need to access their funds. They said USD deposits got housed in FBO accounts at Metropolitan Commercial Bank (MCB). One of the filings intends to achieve Court approval for users to withdraw their funds from these accounts.
Voyager also stated that it would work with MCB to have all the cash withdrawal requests processed in the ordinary course following a review, reconciliation, and approval process.
The entity also reiterated it is working on getting court approval so that those who housed USD can withdraw their cash as soon as possible. The lender explained that all the housed USD are FBO accounts at Metropolitan Commercial Bank (MCB).
Additionally, it intends to sell Coinify, an item described as a non-core asset. They said they previously received Court approval to pay employees and other costs linked to the company in the ordinary course of business. These bills got paid out of operating cash, not cash in the FBO accounts.
By: Jenson Nuñez
