FTX plans partial bailout of bankrupt Voyager’s customers

(Reuters) – FTX stated on Friday it was planning to supply Voyager Digital’s clients entry to a few of their funds, the most recent reduction measure by the Sam Bankman-Fried-led cryptocurrency trade for the ailing crypto trade.

Underneath the plan, Alameda Ventures, the buying and selling agency additionally based by Bankman-Fried, would buy all of Voyager’s digital belongings and digital asset loans, besides the loans to bankrupt crypto hedge fund Three Arrows Capital.

Voyager’s clients may then obtain a few of these funds in the event that they open an account with FTX. Such clients may both withdraw the money steadiness instantly or use it to make purchases on FTX’s platform, the corporate stated.

FTX expects to shut the deal in early August. Participation within the plan could be voluntary, the corporate added.

Voyager filed for Chapter 11 chapter earlier this month. In June, the corporate had signed an settlement with Alameda Ventures for a revolving line of credit score.

Bankman-Fried has grow to be crypto’s white knight in current weeks, throwing lifelines to digital asset platforms which have stumbled within the crypto winter.

(Reporting by Niket Nishant in Bengaluru; Enhancing by David Gregorio)