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The third iteration of the Voyager bankruptcy plan has finally been approved by the court. According to the terms, affected customers can expect to recover up to 35% of their claims.
Voyager Liquidating To Refund Customers
In a significant development for users affected by the Voyager Digital Ltd. bankruptcy case, the court has approved a plan that allows customers to recoup a substantial portion of their frozen funds. According to the latest reports, users may be able to recover up to 35.7% of their initial claims, providing some much-needed relief for those impacted by the unfortunate situation.
This marks a positive turning point for Voyager Digital, a crypto brokerage platform that experienced financial difficulties leading to the freezing of customer accounts.&nbsp;
Attempt No.1: The FTX Debacle
The defunct company has had two failed attempts in the past to refund its customers. Back in September 2022, FTX had placed a winning bid of $1.4 billion on the bankrupt company&rsquo;s assets. However, with FTX also going under soon, the deal fell through. Reportedly, if the deal had been fully realized and FTX had not collapsed, creditors would have been able to reclaim 72% of their account values.&nbsp;
The crypto exchange even went as far as to sue Voyager for $445.8 million in January 2023, alleging that loan repayments made by Voyager in 2022 are subject to clawback due to their timing, occurring right before FTX's bankruptcy.
Attempt No.2: Binance Backs Out
The second chance at redemption came Voyager&rsquo;s way with Binance.US and a $1 billion acquisition deal. However, there was significant legal pushback on this plan from the bankruptcy court, and after a lot of back and forth, the deal finally fell through in late April, resulting in Voyager looking into liquidation options.&nbsp;
Attempt No.3: Finally Approved
The bankrupt crypto brokerage firm finally got lucky on its third try when Judge Michael Wiles of the United States Bankruptcy Court for the Southern District of New York approved its bankruptcy plan to liquidate on May 17.&nbsp;&nbsp;
Under the terms of the plan, Voyager will begin repaying customers' frozen accounts in the near future. The approved proposal ensures that 35.7% of the initial claims will be distributed to the affected users.&nbsp;
Voyager has stated that as of May 8, it held $1.33 billion in recoverable assets, with $629.8 million being immediately available for recovery while facing claims totaling $1.8 billion. There is also a possibility that the firm may recover its funds frozen in the also-bankrupt crypto hedge fund, Three Arrows Capital.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.&nbsp;

Bankruptcy Court Approves Voyager Repayment Plan

Crypto Daily™

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