At the beginning of this month, it was announced that the major crypto broker Voyager Digital has filed for bankruptcy. Now FTX CEO Sam Bankman-Fried is lending a helping hand to the users of this platform, said Reuters. Where they would otherwise probably lose a large part of their money, Bankman-Fried’s plan may now offer relief!
FTX comes to the aid of victims
It was the umpteenth big name that fell over in the current crypto malaise. Voyager Digital has large debts and can no longer pay it off, partly due to the collapse of crypto hedge fund Three Arrows Capital. That hedge fund again had a lot of exposure to Terra (LUNA), the crypto project that has completely collapsed.
In FTX’s CEO’s plan, Voyager customers who have fallen victim to bankruptcy will still be able to access at least some of their assets. Bankman-Fried’s other company, Alameda Research, will take over all digital assets, debt (except those at Three Arrows Capital) to provide this opportunity.
Victims who wish to make use of this option must, however, create an account at FTX. They can then directly withdraw or use their assets within the FTX ecosystem.
FTX lifebuoy likely to arrive in August
For the time being it is therefore a plan, but the negotiations are already in full swing. There will undoubtedly have to be something in return from Voyager now that FTX is willing to throw out a life preserver. Think of a closer collaboration between the two parties or even a complete takeover.
The decision is expected to be made in early August. Then we’ll know exactly how much customers can get back after Voyager’s collapse.
It is certainly not the first time that the well-known exchange FTX has thrown out a lifeline. As early as 2021, the exchange did the same for the Japanese exchange Liquid Global. That company has now been rebranded as FTX Japan.
And also in this current crypto storm, FTX has already lent a helping hand. For example, BlockFi, also an exchange, received $250 million in credit from FTX last month to continue running.