New Delhi: Voyager Digital, the bankrupt crypto lender, has received approval from US Bankruptcy Judge Michael Wiles for its liquidation plan. As a result, customers will soon be able to recover 35 per cent of their cryptocurrency deposits, amounting to approximately $1.33 billion in crypto assets, according to Reuters.
This development marks the end of Voyager’s attempts to reorganize under Chapter 11 bankruptcy. The Voyager Official Committee of Unsecured Creditors has been collaborating with the firm to expedite the implementation of the plan, with hopes of it becoming effective as early as this Friday.
Voyager’s journey over the past few months has been challenging, marked by multiple failed buyouts. The company filed for bankruptcy in July 2022, citing its exposure to crypto hedge fund Three Arrows Capital as a contributing factor. Since then, Voyager has sought support from prominent players in the crypto industry.
Initially, FTX, which is now bankrupt itself, received approval from a US Bankruptcy Court to acquire Voyager’s assets. However, this arrangement eventually fell through. Subsequently, Binance stepped in with an offer valuing Voyager at $1 billion. Unfortunately, Binance recently withdrew from the deal, citing the “hostile” regulatory environment in the US. Regulatory bodies such as the US Securities and Exchange Commission and New York’s financial regulator had attempted to block the agreement.
In light of Binance’s departure, Voyager stated that the Chapter 11 plan enables the direct distribution of cash and cryptocurrency to customers. They emphasized their commitment to swiftly returning value to customers through these direct distributions. Voyager announced that they would provide customers with further details regarding the next steps and any necessary actions to be taken in the coming days.
With the approval of the liquidation plan, Voyager Digital customers can anticipate recovering a significant portion of their crypto deposits. This development brings some resolution to the turbulent period of uncertainty and failed buyouts that the company has experienced. By facilitating the return of assets to customers, Voyager aims to honour its commitment and provide them with the value they are owed.
