Billionaire superman, Sam Bankman-Fried is making headlines again this week, this time for an attempt to save the now bankrupt Voyager Digital. In a statement from Alameda Research, the holding company of Bankman-Fried, the plan would include a buyback opportunity for Voyager’s customers. In this new scheme, former Voyager clients and investors would be able to reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes from Voyager.
Voyager looked at the proposal from Alameda and its partner company, FTX, and decided not to pursue the deal. In an official statement from the company, Voyager went on to say,
“To anyone who reads the Proposal even in a cursory way,” the company said, “it will be obvious that the stand-alone Plan that Voyager filed is capable of delivering far more value to customers than the AlamedaFTX proposal.”
Voyager wasn’t done there, however, they went on to further slam the entire proposal from Sam Bankman-Fried. Going on to further say,
“Converting customer cryptocurrency claims into U.S. dollars based on prices as of July 5, 2022, and paying cryptocurrency claims in U.S. dollars, with customers bearing the tax consequences associated with dollarizing and liquidating their claims.”
What This Means For Crypto Markets
This bold move from FTX and Alameda research to move in like a carrion circling its prey is being viewed as predatory by many in the crypto sphere. They cite, that this isn’t the first time FTX has attempted to come in and purchase the assets of a bankrupt cryptocurrency.
FTX pulled something similar just a few weeks ago when Three Arrows Capital announced they were facing insolvency issues because of their position in the Terra collapse earlier this year. And just like carrion does, FTX and Bankman-Fried smelled the fresh crypto blood in the air and they came to see what was for dinner.
Voyager’s Outlook Going Forward
Voyager Digital may have lost an arm and a leg in the untimely collapse of Three Arrows Capital, but they aren’t quite throwing in the towel yet. The crypto hedge firm still has plenty of valuable assets and they aren’t giving them away for free.
In court documents, Voyager noted they observed the proposal from FTX but could not entertain it in a serious manner because of its public nature. They went on to say that they believe FTX and Alameda Research used this incident as a way to create publicity for FTX. They claimed this ultimately benefitted the Bankman-Fried company and bolstered its current purview as a “white knight” during the crypto winter.
Voyager released details in the bankruptcy documents saying that they do intend to continue moving forward with more than 80 potential third-party investors interested in purchasing the assets of the company.
Will this last? Or will we see yet another embattled crypto company torn to pieces and sold off for pennies on the dollar? Only time can tell, but one thing is for certain, Sam Bankman-Fried may be more of a black knight than a white one during this crypto winter.