Voyager app could soon reopen to distribute funds to creditors
Voyager customers will start to receive communications about the app reopening in advance of June 20
mundissima/Shutterstock modified by Blockworks
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 Wednesday 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.
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, in the filing told creditors that they would be able to view the projected amounts of their initial distributions via Voyager’s app on Friday.
Added Hage: “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.”
The move comes a little over a month after a judge allowed Voyager and its counterparties to move forward with 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 around $1.3 billion to customers. A Reuters report in May said estimated recoveries would be around 35%.
A number of factors dictate the amount of capital customers and other crediorts are able to reclaim from a bankrupt business.
Among them: 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, which could be funneled back at a more substantial scale to its customers.
Voyager is seeking approximately $445 million in loan repayments from FTX. Its claim against 3AC has clocked in at $650 million, per the court filing.
After Binance.US bailed on its $1 billion purchase of Voyager’s assets, the company scrambled to find a new solution.
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