cryptocurrency exchange will allow customers to create accounts funded by early allocations for partial bankruptcy claims.
cryptocurrency trading platform FTX is planning to provide early liquidity to clients of bankrupt cryptocurrency lender Voyager Digital.
The joint proposal was proposed two weeks after Voyager filed for bankruptcy protection. Alameda Ventures, a company controlled by FTX CEO Sam Bankman-Fried, previously provided Voyager with $200 million in cash/USDC and 15,000 Bitcoin loans.
The cryptocurrency exchange said in a press release Friday: FTX is working with West Realm Shires and Alameda Ventures, a company that owns FTX.US, to allow Voyager customers to create new accounts on FTX.
FTX said Voyager clients accepting the proposal will have a cash balance funded by an early distribution of part of their bankruptcy claims. They will be able to withdraw cash immediately or use it to buy digital assets on FTX. Voyager customers will not be asked to participate in the program. "The purpose of our joint proposal is to help build a better way to resolve bankrupt cryptocurrency businesses that allow customers to gain liquidity ahead of time and recover some of their assets without forcing them to guess the bankruptcy outcome and take one-sided risks,"
FTX also said it would not purchase loans from Voyager hedge fund SanArrow Capital, which also filed for bankruptcy this month. And FTX expects that any funds recovered from these loans will be available to supplement Voyager customers, whether they open an account on FTX or not.
FTX plans to complete the transaction in early August. The exchange did not immediately respond to requests to provide more information.
ftX expects that any funds recovered from these loans will be used to supplement Voyager customers, whether they open an account on FTX or not.FTX plans to complete the transaction in early August. The exchange did not immediately respond to requests to provide more information.
ftX expects that any funds recovered from these loans will be used to supplement the allocation to Voyager customers, whether they open an account on FTX or not.FTX plans to complete the transaction in early August. The exchange did not respond to requests for more information immediately.
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