Creditors of Voyager Digital going through the bankruptcy procedure will be able to count on a return of 36% of the value of assets. Similar calculations follow from statements crypto broker for court.
This value is actually half the 72-73% that was assumed in the deal with FTX or Binance.US. On April 25, 2023, the latter withdrew the application, citing a “hostile and uncertain regulatory climate in the US.”
On May 4, Voyager Digital announced preparations for liquidation and payments to creditors “within a few weeks.” Payments are planned in fiat and digital assets.
The court document says that the recovery rate could rise from 36% if Alameda Research fails to recover $445 million from the assets of the crypto broker.
Voyager’s lawyers also set aside $259.6 million for legal fees, administrative lawsuits and other “holds.”
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 facts” and his company disagreed with the characterization of many of the items.
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