Approaching a year since their assets were frozen, Voyager customers are for the first time primed to be able to withdraw a chunk of their crypto. In a recent court filing, plans were outlined for Voyager’s platform to reopen to customers between June 20 and July 5, so that creditors could withdraw about 35% of their crypto. This reopening comes after bankrupt crypto lender Voyager shuttered its core business lines in July 2022, halting customer deposits and withdrawals in the process.
Paul R. Hage, the overseer of the crypto lender’s bankruptcy proceedings, told creditors in the filing that they would be able to view the projected amounts of their initial distributions via Voyager’s app on Friday. Additionally, Hage stated, “The initial distributions of cryptocurrency will be made to creditors between three to seven calendar days after a withdrawal request is submitted on the Voyager platform.”
This development arrives a little over a month after a judge allowed Voyager and its counterparties to move forward with the liquidation of the company. Voyager had previously been vying to restructure via a Chapter 11 bankruptcy proceeding. The company, at the time, said it intended to return approximately $1.3 billion to customers. A Reuters report in May stated that estimated recoveries would be around 35%.
The amount of capital customers and other creditors can reclaim from a bankrupt business is dictated by a number of factors such as the resolution of ongoing litigation. In Voyager’s case, open proceedings involving Three Arrows Capital and FTX would significantly boost Voyager’s assets on hand. This could potentially be funneled back at a more substantial scale to its customers. Voyager is seeking approximately $445 million in loan repayments from FTX and has a claim of $650 million against 3AC, according to the court filing.
After Binance.US pulled out of its $1 billion purchase of Voyager’s assets, the company scrambled to find a new solution. While the planned reopening of Voyager’s platform and the distribution of funds to creditors is a positive step, skepticism remains regarding the amount of recovery customers can expect and the ongoing litigation processes.
In the ever-evolving world of cryptocurrency, these developments serve as a reminder of the need for caution and diligent research in the pursuit of investment opportunities and the safeguarding of assets. As Voyager moves forward with its plans and customers begin to regain access to their frozen funds, the broader public will be watching closely to understand the potential outcomes of such cases in the future.
Source: Blockworks
