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Voyager customers could win back 72% of frozen accounts with FTX deal, say court docs

By Daniela Ešnerová

14:24, 20 October 2022

Judge's gavel and crypto coins in front of the Voyager company name
Former Voyager clients would be onboarded on to FTX platform as part of the sale – Photo: Shutterstock

Former clients of a bankrupt cryptocurrency lender Voyager Digital may be able to retrieve as much as 72% of their accounts’ value under a tentative deal struck with the cryptocurrency platform FTX, court documents have shown.

However, US Judge Michael E Wiles stressed that the tentative deal needs a “go-ahead” from Voyager’s creditors and his final approval.

Voyager token (VGX) to US dollar

Judge Wiles pressed for a “fiduciary out” clause in the contract that would let Voyager clients back out of the provisional deal with FTX should another company present them with a more favourable offer. 

Voyager’s bankruptcy attorney Christine Okike countered that FTX has come forward with “the only viable alternative” for the company, Bloomberg reported. However, Voyager agreed to adjust the “fidicuary clause” so a potential higher offer could be considered.

Last month, the cryptocurrency platform FTX won a race to buy Voyager’s assets following a “a highly competitive,” two-week long auction process.

DOGE/USD

0.15 Price
+2.080% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.50 Price
+1.190% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BCH/USD

486.40 Price
+4.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

BTC/USD

62,771.35 Price
+3.240% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

As part of the sale, FTX would onboard former Voyager customers on to its platform.

FTX to US dollar

Former Voyager clients have been unable to withdraw their money held on the platform for months.

Voyager entered Chapter 11 bankruptcy on 5 July 2022 after suspending account withdrawals, citing “the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (3AC) on a loan from the company’s subsidiary, Voyager Digital”.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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