Voyager Customers May Get 35% Return, as Judge Approves Liquidation Plan
While Voyager’s estate is worth $1.3 billion, it is still waiting to claw back funds from Three Arrows Capital and FTX
mundissima/Shutterstock modified by Blockworks
Voyager will take its first steps to return around $1.3 billion to customers following the approval from a judge on Wednesday, May 15.
According to a Reuters report, Judge Michael Wiles approved the liquidation plan filed by Voyager on May 5.
However, while Voyager’s estate has $1.3 billion or “75.68% of the aggregate value of customer claims against Voyager’s estate,” the report says it will only have an initial estimated recovery of 35%.
Estimated recoveries could increase if it is successful in getting around $445 million in loan repayments owed to the lender by FTX prior to its collapse. It is also a creditor in the liquidation of Three Arrows Capital and may be able to return recoveries based on that outcome as well.
“If the Debtors prevail in the FTX / Alameda preference dispute and further pro rata recoveries are disbursed to Holders of Account Holder Claims and OpCo General Unsecured Claims on account of the FTX / Alameda preference claim reserve, estimated recoveries to Holders of Account Holder Claims will increase,” the report said.
According to the website, customers “may choose either to take your initial recovery in crypto through the Voyager platform or to wait until the crypto withdrawal period is over to receive your initial recovery in U.S. dollars.”
The bankrupt crypto lender was forced to pivot its bankruptcy plan in early May after Binance.US announced that it was pulling out of a $1 billion deal to buy Voyager’s assets.
Binance claimed that it sought to “help Voyager’s customers access their crypto in kind,” but that “the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.”
After Binance.US made the announcement, Voyager said, “our chapter 11 plan allows for direct distribution of cash and crypto to customers (a ‘toggle option’) via the Voyager platform.”
Voyager filed for bankruptcy in July of last year following the collapse of the TerraUSD stablecoin and Three Arrows Capital.
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: Unpacking crypto and the markets.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
