Voyager obtains $484 million to repay creditors in bankruptcy

The estimated payment of this secured amount, including interest, is about 25% of the total claims against Voyager creditors.

Voyager Digital, a defunct cryptocurrency company, has gotten $484 million from settlements with FTX, Three Arrows Capital (3AC), and D&O insurance claims, putting it one step closer to paying its creditors. The company’s attempts to recover financially and repay creditors have reached a major milestone.

Voyager revealed in a petition with the US Bankruptcy Court for the Southern District of New York on April 9 that a settlement with FTX accounts for the bulk of the recovered funds, or around $450 million.

In July 2022, with the crypto market having taken a number of hits, including the May collapse of the Terra ecosystem, Voyager declared Chapter 11 bankruptcy.

U.S. Commodity Futures Trading Commission and Federal Trade Commission (FTC) complaints alleging misleading representations were filed against former Voyager CEO Stephen Ehrlich in October 2023.

The estimated disbursement date for this settlement is near, and it comprises interest and is about 25% of the total claims against Voyager creditors.

Voyager has received a claim of almost $675 million from its continuing dispute with Three Arrows Capital, in addition to the FTX deal. Specifically, Voyager received $20.43 million, which is its fair share of the inaugural allocation from 3AC.

In the years to come, the administrator anticipates further payments when assets are auctioned off and more legal settlements are reached. As part of the D&O insurance mediation settlement, Voyager’s creditors will get a minimum of $14.35 million.

Uncashed checks are only one of several operational obstacles that Voyager must overcome as it continues its financial recovery path. There are around 270,000 uncashed cheques for a total of $17 million; most of these checks are worth less than $25.

Voyager has designated April 20 as the deadline by which unclaimed payments will be deemed null and invalid.

The effects of a data breach at FTX are still affecting Voyager. The cause and impact of the breach that exposed creditor information is the subject of an ongoing enquiry.

A restructuring proposal called for Voyager consumers to recover 35.7% of their claims in cash or cryptocurrency as of May 2023. In November 2023, the crypto exchange reached a settlement with the FTC, receiving $1.65 billion in financial relief.

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