On May 17th, Voyager Digital, a bankrupt cryptocurrency, stated that after the failed acquisition attempt by Binance. US, the company is closing its business and customers will soon be able to recover around 35% of their cryptocurrency deposits.
Voyager's bankruptcy liquidation plan was approved at a hearing in Manhattan, allowing Voyager to return approximately $1.33 billion in encrypted assets to its customers and end its bankruptcy proceedings.
The official creditor committee of Voyager stated that 35% of the funds returned to customers can be withdrawn before June 1st, but the distribution of funds beyond 35% depends on the outcome of future litigation.
According to Voyager's court documents, if Voyager fully wins the lawsuit against FTX, the deposit that customers can retrieve will increase to 63.74%.
Voyager intends to use the same type of cryptocurrency as the customer's account to repay the customer. For unsupported cryptocurrency deposits and Voyager native VGX tokens that cannot be extracted from the Voyager platform, Voyager will instead use stable currency USDC to repay customers.
Introduction:
Voyager filed for bankruptcy protection in July 2022, citing fluctuations in the crypto market and Three Arrows Capital's failure to repay a large loan provided by Voyager in a timely manner.
Voyager attempted to sell twice during its bankruptcy, but both failed. Initially, Voyager planned to sell its assets to the encryption giant FTX for $1.42 billion, but FTX subsequently went bankrupt in November last year and the transaction failed. Afterwards, Coin On America issued a quote of $1.3 billion, but on April 25th, Coin On cancelled the transaction citing "malicious and uncertain regulatory environment in the US market".
The hope of Voyager customers to retrieve their deposits depends on the outcome of the company's litigation with FTX. FTX is seeking to recover the $445.8 million loan it repaid to Voyager before bankruptcy.
After the COVID-19 raged, Voyager, Celsius Network, BlockFi and Genesis Global Capital, the encryption lending institutions, filed for bankruptcy in 2022.
