Voyager Labels FTX a Hypocrite for Opposing to Binance Acquisition Deal – Coinpedia Fintech News

• FTX is being called a hypocrite by Voyager for objecting to the $1 billion Binance acquisition deal.

• Voyager alleges FTX’s bid to purchase it was a desperate attempt to cover up balance sheet discrepancies created by fraud.

BinanceUS was all prepared to acquire Voyager’s asset for $1 billion during one of the worst periods in the history of cryptocurrencies, which was the collapse of FTX. The resistance of the United States Securities and Exchange Commission (SEC), the Department of Justice (DoJ), and FTX’s Alameda Research made the deal much more challenging. Voyager is now making it clear in a public way that it found this criticism unappealing.

Voyager Calls FTX Hypocritic

The failed cryptocurrency lending company has justified its $1 billion proposal to sell assets to the cryptocurrency exchange Binance. Two court files that were released late on January 8 demonstrate that the United States has responded to criticism by labeling it “hypocrisy and chutzpah,” despite the criticism being based on unconfirmed supposition.

Voyager believes that raising objections to the Disclosure Statement based on spurious and unconfirmed media stories while disregarding the significant material that has already been made available to the objectors constitutes a transparent effort to undermine the BinanceUS transaction and damage BinanceUS.

An effort by Alameda to protest the arrangement on the grounds that it violates the hierarchy of creditors laid forth in United States bankruptcy law is met with a welcome that is even colder than before.

According to the submission made by Voyager, Alameda’s complaints are examples of hypocrisy and audacity at their best, and they are pointless. Prior to Voyager’s bankruptcy filing on November 11, FTX and Alameda made an effort to save the company by providing financial assistance.

The cryptocurrency lender went on to assert that Voyager had only agreed to the AlamedaFTX Loan Facility because of FTX’s fraudulent and deceptive promises and that FTX’s move to acquire Voyager was a desperate attempt to cover up the gaps in its own balance sheet caused by the alleged fraud.

“The fallout caused by FTX US’s egregious conduct before and during these chapter 11 cases and FTX US’s subsequent collapse has left Voyager with tight liquidity and mounting administrative costs,” the filing says.

Voyager said the Binance transaction is the greatest choice for people owed money in such a turbulent crypto market, but there are escape methods if a better alternative is found later. In any case, a hearing is scheduled for tomorrow, January 10, in the New York bankruptcy court, so we’ll have to wait and see what happens then.

Source: Read Full Article