FTX is planning to offer early liquidity to customers of bankrupt crypto lender Voyager Digital. The joint proposal comes two weeks after Voyager filed for Chapter 11 bankruptcy. Alameda Ventures, a company controlled by FTX CEO Sam Bankman-Fried, had previously given a loan of $200 million in cash/USDC and 15,000 bitcoin to Voyager.
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FTX is partnering with West Realm Shires, the company that owns FTX.US, and Alameda Ventures to allow Voyager customers to create new accounts on FTX, the crypto exchange said in a press release on Friday.
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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 their cash immediately or use it to purchase digital assets on FTX. Voyager customers would not be required to participate in the plan.
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“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,” said Bankman Fried in a press release.
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FTX also said it will not be acquiring Voyager’s loans to hedge fund Three Arrows Capital, which also filed for bankruptcy this month, as part of the plan. And FTX anticipates 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 or not.
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FTX plans to complete the transaction in early August. The exchange did not respond to requests for more information by press time.
Read more: Behind Voyager’s Fall: Crypto Broker Acted Like a Bank, Went Bankrupt
