We have received fresh updates on Voyager Crypto News regarding the return of customer deposits amidst the company's winding down operations following an unsuccessful buyout by Binance.US. Reports indicate that customers can look forward to recovering up to 35% of their deposit funds.
 |
| Voyager Crypto News |
"Crypto lender Voyager Digital announced that its customers are on the path to recovering approximately 35% of their cryptocurrency deposits."
This comes as the company initiates the process of winding down its operations after a failed buyout attempt by Binance.US, a prominent crypto exchange. Let's delve into the details of this latest update in the Voyager crypto news.
Table of Contents
Voyager's Liquidation Plan Receives Approval:
U.S. Bankruptcy Judge Michael Wiles, presiding over the case in Manhattan, granted approval to Voyager's liquidation plan during a recent court hearing. This crucial milestone enables the company to return around $1.33 billion worth of crypto assets to its customers. Moreover, it marks the conclusion of Voyager's attempts to reorganize under Chapter 11 bankruptcy protection.
Withdrawals and Future Litigation:
As per the official creditors committee of Voyager, customers may have the opportunity to make withdrawals by June 1, indicating a positive step towards reclaiming their assets. However, it is important to note that any distribution beyond the initial 35% would depend on the outcome of future litigation, adding an element of uncertainty to the process.
Factors Leading to Voyager's Bankruptcy:
Voyager filed for bankruptcy protection in July, citing the inherent volatility of cryptocurrency markets and a default on a substantial loan extended to crypto hedge fund Three Arrows Capital (3AC). The combination of these factors led to the company's financial distress and subsequent pursuit of bankruptcy proceedings.
Failed Sale Attempts:
Throughout the bankruptcy proceedings, Voyager made two unsuccessful attempts to sell its assets. Initially, it sought to sell its assets to FTX for $1.42 billion. However, this deal collapsed when FTX faced its own challenges and experienced a significant setback in November. Subsequently, Binance.US emerged as a potential savior, offering $1.3 billion to acquire Voyager. Unfortunately, this deal was called off on April 25, citing regulatory uncertainties and a hostile climate.
Litigation with FTX:
The hopes of Voyager's customers for a higher recovery percentage rest heavily on the outcome of the ongoing litigation with FTX. FTX aims to retrieve $445.8 million in loan repayments made to Voyager before its own bankruptcy. If Voyager emerges victorious in the litigation against FTX, customers' expected recovery could increase to 63.74%, as per the information disclosed in Voyager's court filings.
Final Words
The latest developments in Voyager's winding-down operations signify a significant step forward for customers seeking to recover their cryptocurrency deposits. With the approval of Voyager's liquidation plan and the possibility of withdrawals commencing by June 1, customers can anticipate the retrieval of approximately 35% of their assets. However, the ultimate distribution beyond this initial percentage will depend on the resolution of future litigation, particularly with FTX. As the legal proceedings unfold, the Voyager crypto news will continue to shape the outcome for its customers and the wider crypto community
READ MORE
Comments
Post a Comment