The Voyager Official Committee of Unsecured Creditors (UCC) said the bankrupt crypto lender Voyager Digital is about to finalize the bankruptcy liquidation procedures.
The committee also stated that it believes the lender will begin initial distributions of the funds to the creditors within a few weeks.
- The announcement came nearly 10 days after Binance.US, the U.S. arm of the largest crypto exchange by trading volume, terminated its $1.3B acquisition deal with Voyager, citing the hostile and uncertain regulatory climate in the U.S.
- The deal included an option allowing Voyager to proceed with self-liquidation if Binance.US pulls out of the agreement.
- At the time of termination, Voyager said it would proceed with this option, distributing funds in cash and crypto directly to customers via its own platform.
- Voyager must now submit the liquidation proceedings with the U.S. Bankruptcy Court for the Southern District of New York.
- After the submission, the parties will have 10 days to file an objection regarding the liquidation.
- If an objection is filed, the court will hear arguments before approving the process.
- Voyager Digital filed for Chapter 11 bankruptcy in July 2022, nearly four years after its launch.
- The sales deal with Binance was expected to result in a $100M larger gain for customers than a possible liquidation.