In response to FTX’s proposal to provide early liquidity to Voyager customers, the attorneys for insolvent cryptocurrency lender Voyager Digital called the proposal a “low-ball bid dressed up as a white knight rescue” that only benefited FTX.

Voyager Lawyers Call FTX’s Offer A ” Low Ball Bid”

In court documents filed late on Sunday, attorneys for Voyager said that Bankman-FTX Fried’s exchange and Alameda Research trading company’s proposal was self-serving and accused the businesses of undermining the bankruptcy process.

Sam Bankman-Fried, who owns a majority interest in both FTX and Alamada, offered a reorganization plan for Voyager, and that prompted a response. The plan, which requires court approval, calls for Alamada to purchase all of Voyager’s digital assets and loans—aside from its exposure to Three Arrows Capital—while FTX would enable Voyager’s clients to receive their claims by creating accounts.

Additionally, the lawyers of Voyager said that the company is open to any “serious proposal” for  acquisition  , but criticized Bankman-Fried’s offer saying it was “designed to generate publicity for itself rather than value for Voyager’s customers.”

“AlamedaFTX essentially proposes a liquidation where FTX serves the role of liquidator. The ‘fair value’ of Voyager’s cryptocurrency assets and loans is subject to negotiation with AlamedaFTX,” the lawyers added.

The criticism calls into question Bankman-bid Fried’s for Voyager’s assets, one of numerous rescue solutions the crypto empire of the billionaire has provided to businesses hit by the fall in digital assets. The request was made after Voyager, a lender of digital assets that provided users with high rates for making deposits on its platform, stopped allowing withdrawals and applied for bankruptcy earlier in July.

In court documents, Voyager claimed that it owed $1.1 billion in debt liabilities, including $654 million from Three Arrows, which had also filed for bankruptcy. These obligations included those resulting from the demise of the terra and luna digital tokens. Voyager suspended all trading and withdrawal operations on its platform on July 1 as it became more difficult for it to meet consumer withdrawal demands.

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Voyager’s attorneys had already informed the federal bankruptcy court in New York that they planned to suggest a stand-alone reorganization and a separate sale procedure. Voyager reported on Friday that about 40 prospective purchasers had signed NDAs to start the due diligence process. It has suggested an auction for it to be held three days after the bid deadline of August 26.

By making its proposal public, Bankman-Alameda Fried’s and FTX, according to a statement from Voyager on Sunday, violated their duties to debtors and the court. Voyager added that it “reserves all rights and remedies against Alameda [and] FTX for its clear and intentional subversion of the bankruptcy process.”

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Sam Bankman-Fried Fires Back

Bankman-Fried questioned Voyager’s delay in returning the last of the customers’ deposits on Twitter. He mentioned that under the typical bankruptcy procedure, Voyager’s client assets would be impounded for an extended period of time.

He questioned the motives of bankruptcy attorneys, who typically drain clients’ assets while charging fees.

“The consultants, for instance, likely want the bankruptcy process to drag out as long as possible maximizing their fees. Our offer would let people claim assets quickly,” he stated. “Our offer would give Voyager customers back 100% of the remaining assets that Voyager has, including claims on anything recovered in the future.”

Voyager previously put up a restructuring plan, under which users of the platform who have cryptocurrency will receive a combination of their cryptocurrency, money from any Three Arrows recovery, common stock in the newly reorganized business, and Voyager’s own tokens, VGX. Some customers have objected to the approach.

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