FTX may help bankrupt Voyager customers

Crypto exchange FTX plans to give customers of bankrupt Voyager Digital access to a portion of their funds. This is yet another attempt by the Sam Bankman Fried-led crypto exchange to give relief to the troubled industry.

Reuters reports that Bankman Fried’s trading firm Alameda Ventures is set to buy Voyager’s digital assets and digital asset loans, in addition to loans given to Bankrupt crypto hedge fund Three Arrows Capital. Voyager customers may then receive some of these funds when they open an account with FTX. The firm said that customers can withdraw this fund or it can be used to make purchases on FTX. FTX expects this deal to happen soon.

Voyager Digital filed for bankruptcy earlier this month. Last month, it also entered into an agreement for a line of credit with Alameda Ventures. In its application for bankruptcy, the firm stated that it has more than one lakh creditors. The application has been made under Chapter 11 of Bankruptcy, which bars all legal matters and allows the firm to run as well as prepare a loss recovery plan. Stephen Ehrlich, the firm’s chief executive officer, had said, “With the volatility and sell-off in the crypto market over the past few months, we have to take a big step due to default on a loan given to Three Arrows Capital.”

Voyager Digital recently served a default notice to Three Arrows Capital for failing to pay off a loan of approximately 15,250 bitcoin and about $350 million in stablecoin USDC. A court in the British Virgin Islands has ordered the liquidation of Three Arrows Capital. For this, consultancy firm Teneo has been appointed as the liquidator. The co-founder of Three Arrows Capital, in a tweet regarding the liquidation, said that the firm is committed to resolving it.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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