A crypto exchange platform known for helping out the crypto industry during these tough times is unveiling a proposal to bail out customers of a digital asset firm that recently filed for bankruptcy.
According to a new press release, crypto exchange giant FTX is revealing a plan that would provide customers of troubled crypto brokerage Voyager Digital the opportunity to cash out early.
“Customers of Voyager would have the opportunity to start a new account with FTX with an opening cash balance funded by an early distribution on a portion of their bankruptcy claims. Customers would be able to withdraw their cash immediately, or use it to purchase digital assets on the FTX platform.”
Voyager recently for bankruptcy earlier this month, citing a massive $650 million loan default by embattled crypto hedge fund Three Arrows Capital.
FTX CEO and founder Sam Bankman-Fried says the purpose of the proposal is to establish a better way for Voyager to deal with its insolvency.
“Voyager’s customers did not choose to be bankruptcy investors holding unsecured claims.
The goal of our joint proposal is to help establish a better way to resolve an insolvent crypto business – a way that allows customers to obtain early liquidity and reclaim a portion of their assets without forcing them to speculate on bankruptcy outcomes and take one-sided risks.”
Bankman-Fried, who is on a mission to prop up struggling firms in the space, previously that the crypto market’s overall health could impact its popularity.
“You could say look, it’s being healthy that would cause it to be popular. Ultimately, it’s the popularity that would matter but there’s a flow-through from health there, which is sort of the operative thing. I think there’s also just a thing of like, we need to be a good constructive factor in this space.”
