Voyager to begin payout by June 1 - In a new development, in a hearing today, the court approved Voyager's liquidation procedures. The plan may enable
Voyager to begin payout by June 1 – In a new development, in a hearing today, the court approved Voyager’s liquidation procedures. The plan may enable customers to access their locked funds in a few weeks. Also, depending on the outcome of FTX litigation, customers might be able to recover up to 63.7% of their funds.
The announcement was made earlier today on a Twitter post by the Voyager Official Committee of Unsecured Creditors.
What this means for customers
The committee made it known via the thread that the court has approved Voyager’s liquidation procedures and that it is working closely with Voyager to kick off the plan as early as Friday, May 19.
According to the tweet, once the plan takes effect, the committee will be “dissolved” and the Plan Administrator will commence its job to “Wind Down Debtor.”
2/ After the plan becomes effective, the Committee will be dissolved and the Plan Administrator will take control of the Wind Down Debtor.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 17, 2023
Furthermore, the creditors’ committee asserted that it is working towards beginning payouts by June 1st.
“We are still working towards making initial distributions available no later than June 1. We will provide additional updates as they are available,” the committee said.
In a previous update, Reuters reported that the bankrupt crypto-lending platform predicts that customers will be able to cash out 35% of their funds held with the company.
At a court hearing in Manhattan, U.S. Bankruptcy Judge Michael Wiles approved Voyager’s liquidation plan. The approval allows Voyager to return about $1.33 billion in locked crypto assets to its customers.
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Moreover, depending on the outcome of the litigation with FTX, customers might be able to recover up to 63.7% of their funds. FTX is looking to get back $445.8 million in loan payments which it made to Voyager before the FTX collapse.
According to Voyager’s court filings, if Voyager wins in the litigation, customers could be able to recover up to 63% of their funds.
Voyager and Chapter 11
On July 1, 2022, the crypto lending platform stopped withdrawals and further went on to file for bankruptcy 5 days later, on July 6, 2022. Following this, the company tried to sell its assets to FTX and Binance.US but wasn’t successful.
Among other companies that were affected in 2022 include Celsius Network, BlockFi, and Genesis Global Capital.