Voyager Wants To Reopen Withdrawals As FTX Proposes New Plan

Voyager wants to reopen withdrawals seeking court approval to do so after FTX proposed a joint withdrawal plan so let’s have a closer look at our latest cryptocurrency news.

Voyager Digital said that it is seeking court approval to allow withdrawals on the bankrupt platform but FTX proposed a new joint withdrawal plan. Voyager wants to reopen withdrawals and said it is requesting court permission to allow the users to access their balances and in an unrelated development, fTX offered to allow Voyager customers to make the withdrawals via its platform.

Voyager already has an existing relationship with FTX and Alameda Research customers to make these withdrawals via its own platform. Voyager and FTX also put out a plan that can help users regain access to their account balances. Voyager suspended withdrawals on July 1 and left customers without access to the balances for three weeks. Bankruptcy and restructuring proceedings can allow the customers to regain access to their account balances. Voyager also said that one of the filings seek court approval to allow the customers to withdraw the funds.

Those funds consist of USD balances stored in the For Benefit Of accounts at the Metropolitan Commerical Bank. Voyager also said it plans to process user withdrawal requests in the ordinary course of action but the plan depends on the results of the next court hearing. The company provided a funding update and said that it is seeking the court permission to sell Coinfy which was a company acquired last year. It added that it received court approval to pay employees and other operating costs.

Alongside the Voyager plans, fTX offered to allow withdrawals thorugh its own platform and under the new proposal, FTX sister Alameda Research will purchase Voyager’s assets and loans in cash at fair market value. Voyager users can then access the funds by opening an FTX account which would be an option and the customers that choose to participate can withdraw their balance as cash without using the FTX services. The users can continue to invest in crypto with fees from the previous month.

FTX distinguished the offers from Voyager’s plans as detailed and noted that it recognizes that Voyager can have other ways to provide customers with liquidity via the FBO accounts and that it will include or exclude the accounts as necessary. Sam Bankman Fried the CEO of FTX said that the Voyager customers didn’t choose to be bankruptcy investors that hold unsecured claims and explained that his offer is meant to establish a new way to resolve the insolvent crypto business.

Bankman Fried has come to Voyager’s rescue and his other company Alameda Research, it loaned $485 million to Voyager of cash and crypto so the loan was made after Three Arrows Capital defaulted on the loan of a similar value. FTX said that the current offer will not involve FTX acquiring loans or litigation claims from the company related to Three Arrows Capital and said that Voyager will continue to pursue these matters itself.