Voyager customers were in for some good news a year after their assets were frozen, with the platform stating that they could withdraw a significant chunk of their crypto assets.
The protocol’s customers will soon be able to check how much of their assets could be withdrawn, nearly a year after Voyager filed for Chapter 11 bankruptcy.
A Sigh Of Relief
Paul Hage, Voyager’s bankruptcy administrator, stated in a court filing on the 14th of June that the Voyager app would be updated by the 15th of June. Once the app has been updated, customers will be able to check the amount they can withdraw. Hage also estimated that the withdrawal period could start between the 20th of June to the 5th of July. The bankruptcy plan was approved in court on the 17th of May and will see Voyager customers initially receive around 35% of their claims through withdrawals from the Voyager app. They can also withdraw in cash after a period of 30 days.
“Voyager Court adjourned for the day. Fee examiner’s findings approved by the judge app will come back online on or around the 15th of June Estimated window for withdrawals opening the 20th of June to the 5th of July 30 days to withdraw once the window opens all creditors will receive 35.72 initial distribution.”
Once submitted, withdrawals will take between 3 and 7 days to process. Additionally, some liquidations may take longer depending on the liquidity available at the time of liquidation. Supported cryptocurrencies will be distributed in kind, while unsupported cryptocurrencies will be distributed in USDC. Hage stated,
“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.”
Three Arrows Capital Still Owes $650 Million
Hage also added that the bankrupt crypto hedge fund Three Arrows Capital (3AC) still owed Voyager around $650 million. The first tranche of withdrawals will allow customers to withdraw just over 35% of their funds. Once completed, the focus of the proceedings will shift to recovering additional assets that can be distributed to creditors.
Furthermore, an additional $445 million in customer funds could be made available to creditors. However, this depends on a final resolution of Alameda Research’s preference claim against Voyager, which will happen sometime in September 2023.
“Meditation between @investvoyager and @FTX_Official is anticipated to not start until Fall 2023. Anything less than 100% return would be a devastating result for Voyager creditors!”
Voyager’s Bankruptcy Struggles
Voyager had filed for bankruptcy on the 5th of July, 2022. The company then filed two prior bankruptcy plan proposals, both of which fell through. The first proposal was to the United States arm of FTX. However, this deal fell through after FTX itself filed for bankruptcy. The second was a $1 billion deal with Binance.US. This deal fell through after Binance.US backed out of the deal, citing an uncertain and hostel regulatory climate prevailing in the US. At the time, Binance.US stated in a Twitter communication,
“Binance.US has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager. While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.”
Voyager had expressed disappointment with the outcome, stating,
“Today, we received a letter from Binance.US terminating the asset purchase agreement. While this development is disappointing, our Chapter 11 plan allows for direct distribution of cash and crypto to customers (a “toggle option”) via the Voyager platform.”
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.