- Voyager Digital has announced that its customers can reclaim approximately 35% of their cryptocurrency deposits.
- Judge Michael Wiles ruled in favor of Voyager’s liquidation plan.
- Voyager filed for bankruptcy in July due to market volatility and a substantial loan extended to Three Arrows Capital.
In the aftermath of a failed acquisition by Binance.US, Voyager Digital, a crypto lending firm, has announced that its customers will be able to reclaim approximately 35% of their cryptocurrency deposits. As the company prepares to conclude its operations, this measure aims to provide some compensation to affected users.
Judge Michael Wiles ruled on Wednesday’s hearing, granting permission for the liquidation plan. This pivotal decision by Michael enabled the affected customers to receive a specific amount from the crypto lending platform.
As part of this resolution, the crypto lending platform allocated approximately $1.33 billion in crypto assets to its customers, effectively concluding its endeavors to reorganize under Chapter 11.
In July, Voyager crypto lending platform filed for a bankruptcy plan. The bankruptcy filing by Voyager occurred due to the market volatility in the cryptocurrency market and sector and the substantial loan extended by the platform to the crypto hedge fund Three Arrows Capital (3AC).
Voyager’s Asset Sale Attempts Foiled
Despite two unsuccessful attempts to sell its assets during the bankruptcy proceedings, Voyager encountered setbacks in its pursuit of a successful sale.
Initially, it sought to sell its assets to FTX for a considerable amount of $1.42 billion. Unfortunately, the deal fell through when FTX filed in November, derailing the proposed transaction.
In a subsequent endeavor, Binance.US stepped forward with an offering of $1.3 billion. However, on April 25, Binance.US withdrew from the deal, citing a “hostile environment and regulatory uncertainty” as the primary reasons for their decision. These unforeseen events further complicated Voyager’s efforts to find a suitable buyer for its assets.
The destiny of Voyager’s customers and their sense of hope are closely intertwined with the ongoing legal proceedings surrounding the collapse of the FTX cryptocurrency exchange last year.
FTX seeks to recoup $445.8 million in loan repayments owed to Voyager, a substantial sum that became due before FTX filed for bankruptcy. The resolution of this case holds significant implications for Voyager’s customers, as it could impact their chances of receiving repayment and instill a renewed sense of optimism among them.
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