(Bloomberg) — Crypto platform Voyager Digital LLC said a joint offer proposed by FTX and Alameda is a “low-ball bid” that disrupts the bankruptcy process, according to a court filing.
On Friday, crypto billionaire Sam Bankman-Fried proposed a restructuring deal to Voyager publicly. Under the plan, Alameda, Bankman-Fried’s trading firm, would buy all of Voyager’s digital assets and digital asset loans, other than loans to Three Arrows Capital, in cash at market value. Meanwhile, FTX, his crypto exchange, would offer customers of Voyager an option to receive their share of claims by opening a new account at FTX.
“The AlamedaFTX proposal is nothing more than a liquidation of cryptocurrency on a basis that advantages AlamedaFTX,” lawyers for Voyager said in response to the bid in a court filing submitted Sunday. “It’s a low-ball bid dressed up as a white knight rescue.”
Voyager will entertain any “serious proposal” made under the bidding procedures, but the bid from FTX and Alameda was “designed to generate publicity for itself rather than value for Voyager’s customers,” they wrote. It undermined a competitive process, declared no value in Voyager platform and intellectual property, and ignored tax consequences, among other things, they said.
“We submitted what we think is a generous proposal,” Bankman-Fried said in an emailed comment. “It appears that Voyager’s consultants are attempting to stall out the process, increasing their fees. We feel for the customers who have lost significant funds and are waiting to receive those that remain.”
Voyager reserves all rights and remedies against Alameda and FTX for the “clear and intentional subversion of the bankruptcy process and the damages that may be suffered by customers and other creditors as a result,” the lawyers said in the filing.
Earlier this month, Voyager filed for Chapter 11 bankruptcy protection, weeks after getting a credit line from Alameda. Alameda is a lender, borrower and major shareholder of Voyager.
Read More: Bankman-Fried’s Crypto Firm Alameda Is All Things to Voyager
Under FTX’s proposal, any Voyager customer that doesn’t wish to sign up with FTX would continue to retain all of their rights and claims in the bankruptcy proceedings, but would not receive early access to a distribution on their claim via FTX.
(Updates with comment from Sam Bankman-Fried in fifth paragraph and link to Twitter thread.)
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