FTX’s Proposal Is A “Low-Ball Bid” Disguised As A Rescue

FTX CEO Sam Bankman-Fried’s proposal to buyout Voyager is “a low-ball bid dressed up as a white knight rescue,” bankruptcy lawyers said

Voyager’s lawyer upset with FTX’s proposal

Bankruptcy lawyers representing cryptocurrency lender Voyager Digital have slammed a buyout proposal spearheaded by Sam Bankman-Fried’s companies, claiming the offer made several “false and misleading assertions” that violated both debtors and the bankruptcy court.

Voyager Digital responded to a joint offer from Bankman-Fried’s and Alameda Research Ventures in a court filing lodged Sunday, calling it a “low-ball bid” that would give the crypto billionaire’s businesses an upper hand.

The public proposal emerged in a press release on Friday, which showed FTX and Alameda Ventures’ parent companies offering to buy Voyager’s remaining digital assets and loans, leaving out those made to defunct hedge fund firm Three Arrows Capital (3AC).

Under the same offer, FTX would allow Voyager customers to receive a share of their claims — if they signed up for an FTX account. 

Voyager said it would entertain “any serious proposal” made under its bidding procedures, while the joint offer from Bankman-Fried’s firms “was designed to generate publicity” rather than provide value to customers, they added.

Voyager’s lawyers also said the proposal harms customers as it ignores tax consequences, eliminates the firm’s VGX token (which it appraises at $100 million) and declares no value in the Voyager platform or intellectual property. 

“Alameda/FTX’s proposal purports to allow customers to be ‘long crypto’ while receiving cash on account of their claim. But all Alameda/FTX’s proposal actually does is buy customers’ claims at a discount,”

They wrote

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