Voyager Digital, a crypto broker going through bankruptcy proceedings, will make initial payments to creditors “within a few weeks”.
4/ Voyager is also finalizing everything internally that is necessary to make distributions to creditors. We are hopeful that initial distributions will begin within the next few weeks.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023
Payments are planned in fiat and digital assets.
The company is preparing for liquidation after the collapse of the deal to sell assets to Binance.US. On April 25, the latter withdrew the application, citing a “hostile and uncertain regulatory climate in the United States.”
The transition to liquidation is provided for in the restructuring plan approved by the Bankruptcy Court. The parties will have ten days to protest the relevant application after it has been filed.
In December 2022, Binance.US offered the highest bid for Voyager assets at $1.02 billion.
However, regulators, including the US Securities and Exchange Commission (SEC) and the New York State Department of Financial Services, opposed the deal.
During the hearing in the case, representatives of the SEC said that the US division of Binance operates an unregistered securities exchange. The US Department of Justice also opposed.
U.S. Attorney Damian Williams for the Southern District of New York said the agreement between the companies effectively exonerates Voyager and its employees after violating the Securities Act.
On March 17, 2023, the US Department of Justice filed an application for an emergency freeze on the deal. Three days later, Voyager Digital challenged this request, but a day later, the department sent a cross-appeal. On March 28, the court suspended the sale of assets. On April 19, the authorities agreed with the arguments of the committee of creditors, withdrawing your objections.
Recall that on March 27, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO Changpeng Zhao. The regulator accused the crypto exchange of “deliberate evasion of US law” and non-compliance with the rules.
In response, Zhao said the CFTC’s claims contained “an incomplete statement of the facts” and his company disagreed with the characterization of many of the items.
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