The bankrupt crypto lender Voyager Digital's bankruptcy plan administrator, Paul Hage, has stated that Voyager's app would reopen between June 20 and July 5 to facilitate customer withdrawals. The move will allow creditors to recover 35.72% of their deposits by withdrawing crypto via the app or in cash after 30 days. The self-liquidation plan was approved by U.S. Bankruptcy Judge Michael Wiles in mid-May, authorizing Voyager to repay $1.33B in crypto assets to customers through its own platform. - Further repayments will depend on the aftermath of the other ongoing legal proceedings, especially with the bankrupt crypto exchange FTX and the bankrupt crypto hedge fund Three Arrows Capital (3AC).
- Both firms still owe Voyager millions of dollars.
- The repayment process will start nearly two months 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 sales deal with Binance was expected to compensate 50%-73% of Voyager creditors' holdings and result in a $100M larger gain for customers than a liquidation.
- Before the deal with Binance.US, Voyager sold its assets to FTX's U.S. arm, FTX US, in September 2022 in a $1.42B agreement, which then failed with the latter's bankruptcy.
Voyager Digital filed for Chapter 11 bankruptcy in July 2022, nearly four years after its launch, citing volatility in the crypto market and its exposure to the bankruptcy of 3AC. - With the move, the firm joined other crypto-related companies, including Celsius Network, BlockFi, and Genesis Global Capital, going bankrupt after a prolonged crypto winter.
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