- Voyager Digital, a bankrupt crypto lending firm, has been cleared by the U.S. Bankruptcy Court to repay approximately $1.33 billion to its creditors.
- Customers can expect an initial payment of 35.72% of their claims, with the possibility of further distributions depending on future litigations and recovery efforts.
- Payments will be made either in crypto through the Voyager app or in cash after a 30-day waiting period.
Voyager Digital, once a prominent crypto lending firm, faced financial troubles that led to its bankruptcy in 2022. The firm’s exposure to failed crypto hedge fund Three Arrows Capital and the collapse of FTX, a potential buyer of Voyager’s distressed assets, contributed to its downfall. Despite these challenges, Voyager has been working diligently to develop a liquidation plan and return assets to its investors.
The recent approval from the U.S. Bankruptcy Court marks a significant milestone for Voyager. With approximately $1.33 billion in cryptocurrency assets under its possession, the firm aims to repay its creditors and provide relief to affected customers. However, due to certain holdbacks, customers should expect an initial payment of 35.72% of their claims, with the possibility of further distributions contingent upon future litigations and recovery efforts.
The court’s decision grants Voyager the opportunity to implement the liquidation plan and initiate the repayment process. Customers will have the option to receive payments either in cryptocurrency through the Voyager app or in cash after a 30-day waiting period. The choice between crypto or cash provides flexibility to customers based on their preferences and needs.
While Voyager’s bankruptcy journey has been complex, the court’s approval offers hope for a resolution that benefits both the firm and its creditors. As the implementation of the liquidation plan progresses, stakeholders will closely follow the outcome of future litigations and recovery efforts, which will play a role in determining the extent of further distributions.
In conclusion, Voyager Digital’s clearance to repay $1.33 billion to its creditors marks a significant step forward in its bankruptcy proceedings. The approved liquidation plan paves the way for initial payments to be made, providing partial relief to affected customers. As Voyager continues its efforts to recover and return assets, the outcome of future litigations and recovery initiatives will shape the ultimate distribution of funds.
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Please note that the information provided should not be considered as legal or financial advice