FTX proposes joint plan to provide early liquidity to Voyager Digital customers in bankruptcy proceedings

  • Customers will get instant liquidity and the option to subscribe with FTX
  • Voyager debtors can continue to seek three equity shares for additional redemptions

NASSAU, The BahamasAnd the July 22 2022 /PRNewswire/– FTX Trading Ltd. announced. (“FTX”), owner and operator of FTX.com, a leading global cryptocurrency exchange, today announced a joint offering with West Realm Shires Inc. , owner and operator of FTX US, and Alameda Ventures Ltd, to provide early liquidity to clients of Voyager Digital, LLC (“Voyager”), which filed for bankruptcy in New York advance this month.

Under the joint proposal, Voyager customers will have the opportunity to start a new account with FTX with an opening cash balance that will be financed by early distribution of a portion of their bankruptcy claims. Customers will be able to withdraw their funds instantly, or use them to purchase digital assets on the FTX platform. No client is required to participate, and participation in the joint proposal is entirely voluntary.

FTX hopes to close the transaction as quickly as possible, preferably in early August, in accordance with the requirements of the Chapter 11 process and the need for court approval.

Neither FTX nor any other participants in the joint proposal will obtain Voyager loans to Three Arrows Capital or related litigation. The joint proposal expects that Voyager will pursue its rights in relation to Three Arrows Capital matters and that any redemptions will be available to fund supplemental distributions to clients, whether or not those clients open accounts with FTX.

Voyager customers say they did not choose to be bankruptcy investors with unsecured claims Sam Bankman Fried, CEO of FTX. “The goal of our joint proposal is to help create a better way to solve insolvent crypto businesses – one that allows clients to obtain early liquidity and recover part of their assets without forcing them to speculate on the outcome of bankruptcy and take one-sided risks.”

Details of the offer are explained in a letter to Voyager available at https://help.ftx.com/hc/en-us/article_attachments/7994471857044/FTX_Joint_Proposal_to_Voyager_Customers.pdf. The offer is currently non-binding, has not been accepted by Voyager and is subject to final documentation execution, court approval, and other conditions.

About FTX.COM
FTX.COM is a cryptocurrency exchange created by traders for traders. It offers innovative products, including industry-leading derivatives, options and volatility products, tokenized stocks, prediction markets, leveraged tokens, and the OTC desk. FTX.COM strives to be an easy-to-use yet powerful platform for all types of users, and to be the most innovative exchange in the industry. FTX.COM has grown rapidly since its inception, becoming one of the most respected cryptocurrency exchanges in the world two years ago.

To learn more about FTX.COM, please visit: https://ftx.com/

FTX.COM is not available to residents of the United States or residents of other prohibited jurisdictions, as provided in the Terms of Service.

Media connection
Jay Morakis
M Group for Strategic Communications (on behalf of FTX)
[email protected]
646-859-5951

SOURCE FTX Trading Ltd.

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