Bankrupt Crypto Broker Voyager Cleared to Repay $1.3B to Creditors

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Bankrupt Crypto Broker Voyager Cleared to Repay $1.3B to Creditors:- The U.S. Bankruptcy Court in New York has allowed Voyager Digital, a bankrupt company, to begin repaying its creditors. Judge Michael Wiles approved the liquidation plan, enabling Voyager to return around $1.33 billion worth of cryptocurrency to its customers. This decision follows a report by Reuters about the court’s ruling.

During the hearing, the Court approved the liquidation procedures for Voyager. The Official Committee of Unsecured Creditors stated that they are working with the company to make the plan effective as soon as possible, potentially by this Friday. Once the plan is in place, the committee will be dissolved, and they aim to distribute the funds by June 1.

Voyager recently introduced

Voyager recently introduced its third bankruptcy plan after Binance.US decided to back out of a previous agreement. According to information on Voyager’s website, the company’s assets are worth $1.334 billion, which accounts for 75.68% of the total value of customer claims against Voyager’s estate.

However, customers should expect to receive only 35.72% of their claims initially, as there are some holdbacks. The distribution of the remaining funds depends on the outcome of ongoing legal disputes, including the FTX/Alameda preference claim dispute, potential additional claims by the Voyager Plan Administrator against third parties, and any recovery from the Three Arrows Capital liquidation.

As per Judge Michael Wiles’ order, Voyager stated that the initial payments will be made either in cryptocurrency through the Voyager app or in cash after a 30-day waiting period.

Cryptocurrencies

If you have deposits in cryptocurrencies that are not supported by Voyager and cannot be withdrawn from the platform, as well as Voyager’s VGX token, the company has announced that you will be reimbursed with the USDC stablecoin.

Voyager, a crypto broker, filed for Chapter 11 bankruptcy in July 2022 due to significant losses related to the failed crypto hedge fund Three Arrows Capital (3AC). Since then, the company has been working on a plan to return assets to its investors.

FTX, a crypto Exchange

FTX, a crypto exchange, was initially interested in acquiring Voyager’s distressed assets. However, their plans fell apart when FTX faced its own sudden collapse in November, causing turmoil in the crypto industry.

More recently, Voyager had reached an agreement with the U.S. federal government to sell its assets to Binance, a prominent crypto exchange. Unfortunately, this deal was canceled when Binance.US decided to back out of the agreement on April 25.

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