FTX CEO Sam Bankman-Fried is responding to claims that his company’s proposal to bail out customers of embattled crypto brokerage firm Voyager Digital is predatory in nature.
Voyager Digital filed for bankruptcy earlier this month after crypto hedge fund Three Arrows Capital (3AC), defaulted on a $650 million loan.
As Voyager faces insolvency, FTX announced last week that it is giving the firm’s customers an opportunity to cash out a portion of their assets.
In a series of tweets, Bankman-Fried says that Voyager customers are at the losing end as the company goes through the bankruptcy process.
“The longer the process drags out, the more optionality customers lose.
There’s a long, drawn out process, during which funds are frozen. It can take years…Meanwhile, that entire time, various bankruptcy agents are slowly bleeding the customer’s frozen assets dry with consulting fees. This can cost customers hundreds of millions of dollars by the time all is said and done.
Lots of parties were trying to bid $0.10 on the dollar for the assets. If a customer had $100 on the platform, a third party would pay $10 for it, get whatever funds remained (maybe $75), and then the customer gets back $10.”
The crypto billionaire refutes claims that his firm’s proposal will hurt Voyager customers even more.
“We submitted an offer: If accepted, any customer who wanted could come and get back their share of everything that remained, as soon as possible.
It would let customers–if they chose–get the remaining assets back right away, with no fees or additional haircut.”
The 30-year-old executive says that the goal is for Voyager customers to get all of the bankrupt brokerage’s remaining assets and those that it could recoup in the future.
“In the end, we think Voyager’s customers should have the right to quickly claim their remaining assets if they want, without rent seeking in the middle. They’ve been through enough already.
To clarify: our offer would give Voyager customers back 100% of the remaining assets that Voyager has, including claims on anything recovered in the future.”
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