Aave

Celo

Bitcoin Cash

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<p>Voyager Digital Ltd., a crypto trading platform, has announced its plans to liquidate its assets and wind down its operations. The decision comes after the company failed to find a buyer for its business, despite months of ongoing talks with several buyers.</p>



<p>After failing to reach an agreement on a sale to either FTX US or Binance.US, lawyers for Voyager Digital say the bankrupt crypto lender will self-liquidate its assets and wind down operations.</p>



<h2 id="voyager-digital-crypto-journey-comes-to-an-end">Voyager Digital crypto journey comes to an end</h2>



<p>According to a Friday filing, Voyager Digital will liquidate and restore to consumers a number of digital assets on the platform that cannot be removed. Major cryptocurrencies like as Algorand (ALGO), Celo (CELO), and Avalanche (AVAX) are among them. </p>



<p>The announcement, filed in a court filing on Friday, comes just ten days after Binance US abruptly backed out of a $1 billion deal to buy <a href="https://www.cryptopolitan.com/binance-us-terminates-voyager-asset-purchase-agreement-amid-regulatory-concern/?swcfpc=1">Voyager Digital&#8217;s</a> assets when the US government intervened to prohibit part of it. Prior to the agreement with Binance US, the crypto lender made a similar offer to FTX. When FTX went bankrupt alongside Voyager in November, the first agreement was canceled.</p>



<p>According to th<a href="https://storage.courtlistener.com/recap/gov.uscourts.nysb.312840/gov.uscourts.nysb.312840.1374.0.pdf" rel="nofollow noopener" target="_blank">e filing,</a> Voyager&#8217;s customers will receive an initial recovery of 36% of their crypto holdings, which is an appallingly low recovery rate when compared to both estimates of their recovery rate of 72-73% if either of the acquisition plans were successful, as well as recovery estimates for creditors of other bankrupt crypto platforms. Celsius&#8217; creditors, for example, are expected to collect approximately 70% of their shares.</p>



<figure class="wp-block-image size-full"><img width="965" height="317" src="https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242.png" alt="image 242" class="wp-image-300300" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242.png 965w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242-300x99.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242-768x252.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242-24x8.png 24w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242-36x12.png 36w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242-48x16.png 48w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/image-242-150x49.png 150w" sizes="(max-width: 965px) 100vw, 965px" /><figcaption>Source: Voyager Digital Court Filing</figcaption></figure>



<p>According to the court filing, a number of other significant cryptocurrencies on the platform will not be liquidated but would instead be refunded to users in digital form, albeit at a recovery rate of roughly 36%. Aave (AAVE), Ethereum (ETH), Bitcoin Cash (BCH), and 65 other major crypto assets are among them.&nbsp;</p>



<p>Former clients will be reimbursed soon, the failing firm announced on Twitter. &#8220;We are hopeful that initial distributions will begin within the next few weeks,&#8221; the company said.&nbsp;</p>



<p><a href="https://www.cryptopolitan.com/voyagers-binance-us-1b-deal-is-a-go/?swcfpc=1">Binance.US</a>, the crypto exchange Binance&#8217;s sibling firm that purports to be controlled separately, backed out of a $1.3 billion restructuring plan to buy Voyager assets last week. It noted the United States &#8220;hostile and uncertain regulatory climate.&#8221;</p>



<h2 id="what-8217-s-the-way-forward-for-creditors">What&#8217;s the way forward for creditors?</h2>



<p>Last year, digital asset broker Voyager went bankrupt after exposing huge exposure to failing crypto hedge fund Three Arrows Capital.</p>



<p>Since then, the corporation has been figuring out ways to return assets to investors who employed its services. Cryptocurrency exchange FTX had planned to purchase Voyager&#8217;s troubled assets before going bankrupt in a highly publicized and unexpected bankruptcy that rocked the crypto world.</p>



<p>The founder and former CEO, Sam Bankman-Fried, has since been charged with 13 criminal offenses and is currently on trial.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">1/ Voyager and the UCC are in the process of finalizing Liquidation Procedures. As a reminder, the Liquidation Procedures must be filed before the Plan can go effective.</p>&mdash; Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) <a href="https://twitter.com/VoyagerUCC/status/1654203057591267329?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">May 4, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>According to the filing, the recovery rate could increase if defunct crypto trading firm Alameda Research&#8217;s quest to recoup $446 million from Voyager Digital&#8217;s estate fails. In addition to reserving $446 million of the estate&#8217;s assets for the Alameda suit, Voyager Digital&#8217;s attorneys are retaining an additional $259.6 million for litigation fees, administrative claims, and various other &#8220;holdbacks.&#8221;</p>



<p>Creditors who have any of the 67 &#8220;supported&#8221; tokens, including BTC and ETH, locked on the site will be able to withdraw the authorized percentage of their crypto immediately. Voyager will sell any of the 38 &#8220;unsupported tokens,&#8221; including SOL and ALGO, and refund customers in USDC, a stablecoin.</p>



<p>Objections to the planned liquidation procedure must be filed with the United States Bankruptcy Court for the Southern District of New York (SDNY) by May 15 at 4 p.m. EST.</p>

Voyager Digital faces reality: Plans to wind down business after failed sale

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