Bankrupt crypto lender Voyager Digital has announced plans to self-liquidate its assets and cease operations following deals to sell itself to FTX or Binance.US.
one in friday filingThe company’s lawyers revealed that Voyager customers will now recover 36% of their crypto holdings, which is lower than the 72-73% estimated recovery rate they would have received if the Binance.US acquisition plan was completed.
However, according to the filing, the recovery rate could increase if defunct crypto trading firm Alameda Research is unsuccessful in its attempt to withdraw $446 million from Voyager’s assets.
Voyager’s attorneys are also withholding further funds, including $259.6 million for litigation costs, administrative claims and other blockages.
Customers who hold any of the 67 supported tokens, including bitcoin and ether, will be able to directly withdraw an acceptable percentage stuck on the platform.
However, many digital assets on the platform that cannot be withdrawn will be liquidated and returned to customers, including major cryptocurrencies such as Algorand (ALGO), Celo (CELO), and Avalanche (AVAX).
The failed crypto lender also mentioned that former customers will soon receive some sort of reimbursement. “We expect initial deliveries to begin within the next few weeks,” it wrote on Twitter.
Voyager’s lawyers explained that after the procedures are complete, there will be a 10-day objection period.
If there are objections to the plan, the matter will go to trial where the court will weigh the arguments. If there isn’t one, Voyager plans to move fast with its plan.
Still, the recovery rate for Voyager customers is very low. In comparison, creditors of Celsius, another bankrupt crypto platform, are estimated to have received back 70% of their holdings.
Voyager’s Rocky Discontinuation
Since Voyager disclosed its massive exposure to failed crypto hedge fund Three Arrows Capital last year, the company has been working on a way to return assets to its investors.
Initially, FTX Safe A US bankruptcy court approved to take over Voyager’s assets, but this soon fell into disrepute.
After this, Binance entered the game with an offer Voyager cost $1 billion,
However, 10 days ago, the Exchange pulled out deal, citing a “hostile” regulatory climate in the United States. Binance.US said on Twitter at the time:
“While it was our hope throughout this process to help Voyager customers access their crypto in physical form, the hostile and uncertain regulatory environment in the United States has presented an unpredictable operating environment affecting the entire American business community. Have done.”
The decision came after US regulators, including the Securities and Exchange Commission (SEC) and New York’s financial regulator, tried to block the deal,
The SEC claimed the Voyager deal could violate laws on unregistered offers and sales of securities, while New York’s top financial regulator said Voyager “operated a virtual currency business illegally within the state without a license.” “
