Crypto trading platform FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital.
- Voyager customers who take the offer will have an opening cash balance funded by an early distribution on a portion of their bankruptcy claims, FTX said. They would be able to withdraw the cash immediately or use it to purchase digital assets on FTX. Voyager customers won't be required to participate in the plan.
- “The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks,” Bankman-Fried said in the press release.
- FTX also said it won't purchase Voyager’s loans to hedge fund Three Arrows Capital, which also filed for bankruptcy this month, as part of the plan. And FTX expects that any recoveries from those loans would be available to fund supplemental distributions to Voyager customers, regardless of whether they opened an account with FTX.
- FTX plans to complete the transaction in early August. The exchange didn't immediately respond to requests for more information.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.