Bankruptcy crypto lender Voyager Digital said customers will soon recover 35 percent of their cryptocurrency deposits, following a rocky road over the past few months following several failed purchases.
US Bankruptcy Judge Michael Wiles on Wednesday approved Voyager’s liquidation plan, which will allow the firm to return approximately $1.33 billion in crypto assets to its customers, according to a report. Reuters.
Reuters reported that this would end Voyager’s efforts to reorganize under Chapter 11.
Voyager’s official committee of unsecured creditors said they were “working with the firm to bring the plan into effect as soon as possible (as soon as this Friday).
Unconstructed road
Since Voyager filed for bankruptcy in July 2022 due to its exposure to crypto hedge fund Three Arrows Capital, the company has been trying to get backing from big names in crypto.
First, the now bankrupt FTX Safe US Bankruptcy Court approves taking Voyager’s assets.
Then it collapsed.
Then, Binance tried its hand and came up with an offer Important Voyager for $1 billion.
But the exchange recently pulled out of the deal, with citing a reference A “hostile” regulatory environment in the US, after the US Securities and Exchange Commission and New York’s financial regulator tried to block the deal.
Binance said in April, “While it was our hope throughout this process to help Voyager customers gain access to their cryptocurrency, the hostile and uncertain regulatory environment in the United States has led to an unexpected operational change affecting the entire American trading community.” presented environment.
When Binance left, Voyager said the Chapter 11 plan “allows for direct delivery of cash and crypto to customers.”
“In line with plan, we will now move quickly to return value to customers via direct delivery. We will provide more details on next steps and any actions customers need to take in the coming days,” Voyager said in April.