The platform is completing all internal procedures necessary to pay creditors

Voyager will return assets to customers “within the next few weeks”

05.05.2023 - 14:45


2 min

Bankrupt lender Voyager Digital could start distributing cash and crypto to creditors “within the next few weeks,” according to the Official Committee of Unsecured Creditors in the troubled crypto lender’s bankruptcy case.

The firm is finalizing the liquidation procedures after crypto exchange Binance.US pulled out of a $1.3 billion deal to buy its assets.

“Voyager is also finalizing everything internally that is necessary to make distributions to creditors,” the creditors committee said on Twitter. "We are hopeful that initial distributions will begin within the next few weeks.

The court-approved restructuring plan had included a “toggle” that allowed Voyager to liquidate if Binance.US decided to exit the deal. The crypto exchange said it backed away from the plan due to the “hostile and uncertain regulatory climate in the United States.”

The failed deal between Voyager and Binance.US was met with government scrutiny. The U.S. Securities and Exchange Commission indicated in a court hearing that staff believe Binance.US is operating an unregistered securities exchange in the country, although the commission hasn’t taken an official position.

Voyager bankruptcy asset recovery

Voyager must first file the liquidation procedures in the U.S. Bankruptcy Court for the Southern District of New York, and parties will then have 10 days to object to the plan. The company said it had more than 100,000 creditors when it filed for bankruptcy protection last summer.

“If no objections are filed, Voyager intends to go ‘effective’ with the plan at that time,” the committee said." If an objection is filed, the Court will hold a hearing to consider the objection before the plan can go effective."

Of the 6% of creditors who voted on the proposed Voyager restructuring plan, 97% voted in favor. Customers would have seen a 73% recovery of assets under the Binance.US proposal, although that percentage could have dropped to 48% if claims from bankrupt crypto exchange FTX and its sibling Alameda Research are eventually successful.

This material is taken from the website

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy