Reading 3 min Views 6 Published Updated
On May 17, the U.S. Bankruptcy Court for the Southern District of New York approved a plan to bankrupt brokerage Voyager, according to a Reuters report. Judge Michael Wiles’ order approving the procedure was released by the court a day earlier.
The so-called third bankruptcy plan was proposed on May 5 after Binance on April 25. US has abandoned plans to buy Voyager’s $1 billion assets. This deal overcame resistance from the US government prior to the Binance rollover. US at the last minute. “Voyager” is now liquidating, that is, distributing its assets to 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 failure cases?
In what other industry can you fail at literally everything & still come out with millions?
Make it make sense. https://t.co/BQEu0J9h9H
— VGX Heroes (@VGX_Heroes) May 15, 2023
In September, before the Binance deal. US, FTX US won an auction of Voyager’s assets for $1.4 billion, but that sale fell through when FTX collapsed. It is reported that the sale of FTX would allow creditors to receive 72% of the value of their accounts. In January, FTX sued Voyager for $445.8 million, alleging that loan payments made in 2022 are refundable because they happened just before FTX went bankrupt.
Related: US officials appeal defense of Voyager executives in Binance sale. US
Voyager said on its website that customers can now expect to receive 35.72% of their claims initially in either cryptocurrency through the Voyager app or in cash after 30 days. As of May 8, it had $1.33 billion of assets to recover, of which $629.8 million was available for initial recovery in $1.8 billion claims, according to Voyager.
Customers with cryptocurrency in their account(s) will receive in exchange a combination of the cryptocurrency in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.
— Stephen Ehrlich (@Ehrls15) July 6, 2022
The amount of initial creditors’ reimbursement could increase if FTX/Alameda Research’s claim for preferential reimbursement is denied. Voyager is withholding $445 million to cover this claim. In addition, Voyager can still recover funds from the bankrupt Three Arrows Capital. At the end of June, the company issued a default notice for Three Arrows on a 15,250 Bitcoin (BTC) and $350 million (USDC) loan. These assets were worth $655 million then and roughly $768 million at the time of writing.
Voyager filed for bankruptcy on July 5.