Voyager bankruptcy plan approved, customers may recover 35.7% of claims initially
Crypto brokerage Voyager’s bankruptcy plan was approved by the United States Bankruptcy Court for the Southern District of New York on May 17, according to a Reuters report. Judge Michael Wiles’ order approving the procedure was published by the court a day earlier.
The so-called third bankruptcy plan was proposed on May 5 after Binance.US backed out of plans to buy $1 billion worth of Voyager assets on April 25. That deal had overcome resistance from the U.S. government before Binance.US’ last-minute reversal. Voyager will now liquidate — that is, distribute its assets to its creditors.
Why are lawyers & executives for #Voyager not forfeiting their pay if they didn't do their jobs, especially when many are working other #crypto bankruptcy cases? In what other industry can you fail at literally everything & still come out with millions?Make it make sense. https://t.co/BQEu0J9h9H
In September, before the Binance.US deal, FTX US had won an auction for Voyager’s assets, bidding $1.4 billion, but that sale fell through when FTX collapsed. The FTX sale would reportedly have allowed creditors to receive 72% of the value of their accounts. FTX sued Voyager for $445.8 million in January, claiming loan repayments it made in 2022 are liable to clawback because they occurred immediately prior to FTX’s bankruptcy.
Related: US officials appeal protections for Voyager execs in Binance.US sale
Voyager said on its website that customers could now expect to receive 35.72% of their claims initially, either in crypto through the Voyager app or in cash after 30 days. According to Voyager, it had $1.33 billion of assets for recovery as of May 8, of which $629.8 million was available for initial recovery, on claims of $1.8 billion.
Customers
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