Voyager’s customers have been awaiting a glimmer of hope amidst the tumultuous times the company has faced. Their patience has been paid off with a piece of good news.
Liquidation Plans
On May 18, the Voyager Official Committee of Unsecured Creditors announced that the U.S. Bankruptcy Court for the Southern District of New York approved Voyager’s liquidation procedures. Upon the repayment plan, Voyager will send cash and cryptos to customers. The plan execution is set for as early as May 19.
“At today’s hearing, the Court approved the liquidation procedures. We are working with Voyager to go effective under the plan as soon as possible (as early as this Friday),” said the Committee.
According to preliminary assessments, customers can expect an estimated initial repayment of around 35.72% of their claimed amount.
These funds will be disbursed in the form of USDC and VGX. Notably, VGX holders will have the option to receive USDC or cash in lieu of VGX. However, it is essential to acknowledge that the actual percentage of repayment may vary, primarily contingent on the outcome of the ongoing FTX litigation.
Despite the coming re-launch of Voyager’s platform, customers can’t sell their crypto refund on the platform. They must transfer their funds to a designated wallet to sell or trade. The repayment will last 30 days after the platform’s re-opening.
Voyager Digital, a prominent financial services provider, has submitted a petition for Chapter 11 bankruptcy.
The company attributes this decision to the prevailing market volatility and the unfortunate collapse of its debtor, Three Arrows Capital (3AC). Should the request for Chapter 11 bankruptcy be granted, Voyager will benefit from safeguarding all its assets throughout the corporate restructuring process.
In accordance with the Chapter 11 bankruptcy filing, Voyager has disclosed its current asset range to be between $1 billion and $10 billion, with over 100,000 creditors involved. Notably, the company has stated that it possesses approximately $1.3 billion worth of crypto assets on its platform.
Furthermore, Voyager claims to have access to over $110 million in cash and crypto assets, which will facilitate the continuation of day-to-day operations throughout the bankruptcy proceedings.
Within its asset portfolio, Voyager holds around $1.3 billion in crypto assets and has provided loans of $650 million to the company 3AC. Additionally, the company safeguards $350 million in client funds, held in Metropolitan Commercial Bank accounts in the form of cash.
FTX/Voyager Settlement
Earlier this year, disgraced cryptocurrency exchange FTX initiated legal proceedings against Voyager Digital to reclaim $445.8 million that had been previously transferred to Voyager by FTX. FTX and Voyager were undergoing bankruptcy proceedings following the cryptocurrency market crash in 2022.
After Voyager submitted its bankruptcy petition in July, a court issued a directive to repay all outstanding debts owed to FTX and FTX’s affiliated hedge fund, Alameda Research.
FTX has filed a lawsuit against Voyager Digital, seeking to retrieve approximately $446 million that FTX had previously disbursed to Voyager.
According to court documents, FTX indicated that it had made $248.8 million in September and $193.9 million in October on behalf of Alameda, in addition to an extra $3.2 million in interest payments in August.
Given that these loan payments were made close to FTX’s bankruptcy filing, FTX argues that they qualify for recovery and could be used to repay other FTX creditors. These details were disclosed in the complaint filed by FTX.
FTX, previously a prominent figure in the global cryptocurrency exchange sector, sent shockwaves throughout the industry when it filed for bankruptcy in November, leaving approximately 9 million customers and other investors grappling with significant losses amounting to billions of dollars.
2022 was a wild year, but it looks like the dust is finally starting to settle. Now investors can close the book on this chapter.
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