voyagerVoyager, a crypto brokerage, has received approval for its bankruptcy plan from the United States Bankruptcy Court for the Southern District of New York. The court’s order was published on May 16, and the plan, referred to as the third bankruptcy plan, was proposed on May 5. Previously, Binance.US had intended to purchase $1 billion worth of Voyager assets, but they backed out on April 25, leading to the formulation of the new bankruptcy plan.
Before the Binance.US deal, FTX US had won an auction to acquire Voyager’s assets for $1.4 billion. However, this sale fell through when FTX faced its own collapse. The proposed FTX sale would have allowed creditors to receive 72% of their account values. In January, FTX sued the exchange for $445.8 million, claiming that loan repayments made in 2022 should be subject to clawback due to FTX’s subsequent bankruptcy.
Voyager’s plan for its customers
The exchange has stated on its website that customers can expect to initially receive 35.72% of their claims, either in cryptocurrency through the Voyager app or as cash after a 30-day period. As of May 8, Voyager had $1.33 billion in assets available for recovery, with $629.8 million being allocated for initial recovery, against claims totaling $1.8 billion.
The initial recovery amount for creditors could potentially increase if FTX/Alameda Research’s claim for preferential recovery is unsuccessful. The exchange is reserving $445 million to cover this claim. Furthermore, there is a possibility of the exchange recovering funds from bankrupt Three Arrows Capital, as the exchange had issued a notice of default to Three Arrows for a loan involving 15,250 Bitcoin and 350 million USD Coin in late June.
The value of these assets was approximately $655 million at that time and around $768 million currently. The exchange filed for bankruptcy on July 5.
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