A group of lawyers working for Voyager has already rejected the offer from Sam Bankman-Fried’s entities. The legal team described the proposal as one created to spread more publicity, capable of disrupting the bankruptcy procedures. Bankman-Fried has been trying to rescue all these troubled crypto entities.

Embattled crypto lender Voyager Digital rejected a joint offer from FTX and Alameda Research despite being cash-strapped and crushed by bankruptcy procedures.

Last week, FTX and Alameda generated alarm in the crypto space by bringing a restructuring deal to troubled Voyager. The deal would involve Alameda acquiring Voyager funds at market value except for loans to Three Arrows Capital.

The other branch of this deal was a proposal for Voyager users to open profiles with FTX and receive their share of claims in the accounts, with Alameda Research canceling its loans to Voyager as part of the agreement.

However, a recent court document highlighted that the legal team rejected the offers from entities tied to Sam Bankman-Fried. The rejection may have left dissatisfied users figuring out what to do when trying to make sense of the stance taken by an entity like Voyager.

Voyager offer

The document highlighted that the offer from Voyager was an estimate that sought to pass itself as a rescue move. The AlamedaFTX proposal is just a liquidation of digital assets in a way that benefits AlamedaFTX.

The document reads that the team goes on to claim that the proposal got created to spread publicity instead of offering value to the users and noted that such a proposal could suffocate the already complicated bankruptcy process.

Voyager confirmed that it remains open to more solid offers for a potential restructuring agreement that brings advantages to all its staff of stakeholders. The entity filed for Chapter 11 bankruptcy protection at the start of the month after it acquired a credit line from Alameda.

Sam Bankman-Fried Believes this Offer has a Solid Structure

Bankman-Fried highlighted that the deal was a generous proposal. According to Bankman-fried, this proposal has the same tone as previous offers. He claims that the rejection of this deal happened because of the consultants trying to milk the process to make their fees grow.

In an extended tweet, Bankman-Fried compared the Voyager debacle with the whole Mt. Gox situation and spoke about a long, drawn-out process that could take many years before investors can receive their deserved access to their funds. He stated that the longer the process, the more alternatives users might lose.

Meanwhile, that entire time, various bankruptcy agents are slowly draining frozen assets with consulting fees, said Bankman-Fried. This action can cost customers hundreds of millions of dollars by the time this case gets solved.

Sam Bankman-Fried is one of the wealthiest people in crypto due to his FTX exchange and Alameda Research trading entity. He started by trading ETFs at a quant firm, giving away a juicy part of his salary to charity, and then decided to explore the fields of crypto trading in late 2017.

By: Jenson Nuñez

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