Voyager bankruptcy plan approved, customers can initially recover 35.7% of claims

According to Reuters, the bankruptcy plan of crypto brokerage Voyager was approved by the United States Bankruptcy Court for the Southern District of New York on May 17. reports, The order from Judge Michael Wiles approving the process was published the day before the court

the so-called third bankruptcy plan was Proposed On 5 May, Binance.US pulled out of a plan to buy $1 billion worth of Voyager assets on 25 April. Voyager will now liquidate – that is, distribute its assets to its creditors.

Why are there for lawyers and executives #sailor If they don’t do their job, they don’t lose their pay, especially when there are many others working. #crypto bankruptcy cases?

In what other industry can you really fail at everything and still come out with millions?

Make sense of it. https://t.co/BQEu0J9h9H

– VGX Heroes (@VGX_Heroes) May 15, 2023

In September, prior to the Binance.US deal, FTX US won an auction for Voyager’s assets, bidding $1.4 billion, but the sale collapsed when FTX collapsed. The FTX sale will reportedly allow creditors to receive 72% of the value of their accounts. FTX sued Voyager for $445.8 million in January, claiming that loan repayments made in 2022 are liable for clawback because they occurred just before FTX’s bankruptcy.

Related: US Officials Appeal for Protection for Voyager Executives in Binance.US Sale

Sailor Said on its website that customers can now expect to initially receive 35.72% of their claims, either in cryptocurrency through the Voyager app or in cash after 30 days. According to Voyager, it had $1.33 billion in assets for recovery as of May 8, of which $629.8 million was available for initial recovery on $1.8 billion in claims.

Customers who hold crypto in their account(s) will, in return, receive a combination of crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly restructured company, and Voyager Tokens.

— Stephen Ehrlich (@Ehrls15) July 6, 2022

The size of the creditors’ initial recovery may increase if FTX/Alameda Research’s preferential recovery claim is unsuccessful. Voyager is withholding $445 million to cover that claim. In addition, Voyager can still recover money from bankrupt Three Arrows Capital. Voyager issued a notice of default to Three Arrows on a loan of 15,250 bitcoin (BTC) and 350 million USD coin (USDC) in late June. Those properties were then valued at $655 million and at the time of writing are approximately $768 million.

Voyager filed for bankruptcy on 5 July.

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