Voyager Digital Rejects FTX Buyout Over Customer Fears

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  • Voyager Digital has rejected a buyout offer from FTX
  • The bankrupt exchange savaged FTX, saying the company was just doing it as a PR exercise
  • Voyager filed for bankruptcy three weeks ago

Troubled lending platform and exchange Voyager Digital, which entered bankruptcy three weeks ago, has rejected a buyout from FTX’s investment arm Alameda Ventures citing potential harm to customers and a lack of value in the deal. In a letter filed yesterday, Voyager formally rejected the proposal, with its legal team claiming that the offer from FTX was “designed to generate publicity for itself rather than value for Voyager’s customers” and did not have their best interests at heart.

FTX “Openly Disparaged Voyager” in Offer Letter

FTX made an offer for Voyager Digital on July 22nd in association with West Realm Shires, the owner and operator of FTX US and Alameda Ventures. Voyager customers would have been able to claim a portion of the funds that were frozen by the platform on July 1st although the offer didn’t make clear how much each customer was able to withdraw.

Under the terms of the deal, Voyager customers would have been required to start a new account with FTX to receive an early distribution of a portion of their bankruptcy claims, with customers also to withdraw their cash immediately or use it to purchase crypto on the FTX platform.

FTX Wants to Scrap VGX Token

It’s fair to say that Voyager was not impressed with the offer, calling it “a low-ball bid dressed up as a white knight rescue” and questioning the motives behind it, calling the move nothing but a PR exercise for FTX. The exchange also said that the proposal “harms customers (but benefits AlamedaFTX) for many reasons”, saying that the bid will put other potential buyers off and the conversion of owed funds to a dollar value runs against Voyager’s principles.

It also advocates the elimination of the VGX token which “would destroy in excess of $100 million in value immediately.”

It’s fair to say that if FTX is serious about its desire to buy Voyager then it has some serious relationship bridges to build, not to mention improving its offer significantly.