Voyager approved to begin repayment of frozen customer accounts

Bankrupt crypto lending platform Voyager Digital on Wednesday won court approval to start repaying long-stranded money to its customers.

As of now, customers are guaranteed to receive only 36% of their dues.

• The approval to start the liquidation process comes 10 months after the trip Freeze Client withdrawals in July 2022, shortly after bankrupt hedge fund Three Arrows Capital (3AC) filed for bankruptcy.
• As informed of Judge Michael Wiles said that “no one is happy with the liquidation”, referring to customers disgruntled with the bankruptcy process and the outcome, according to Bloomberg. Common criticisms included the cost of bankruptcy, the amount paid to lawyers, monitoring of the case, and partial returns to creditors.
• Nevertheless, Wills stated that this was his only option as Voyager lacked the funds to repay the customers in full.
• “Hindsight being 20/20 – I’m sure everyone wishes something had happened better,” said Wiles. “We are where we are, trying to do the best we can where we are.”
• Voyager’s misfortunes continued long after Admission bankruptcy in July its initial plan a purchase deal FTX fell when the crypto exchange imploded in November. Voyager creditors subsequently subpoenaed FTX executives for information about plans to buy the company, probing whether it was a fair offer or just a publicity stunt.
• Voyager’s $1 billion buyout deal with Binance US also fell through last month, with the former citing a “hostile and uncertain regulatory environment in the United States.”
• The lender currently has only $630 million to repay $1.8 billion in customer claims, according to a May 5 court filing. If the pending dispute with FTX proves fruitful, its holding could increase.

Bankrupt crypto lending platform Voyager Digital on Wednesday won court approval to start repaying long-stranded money to its customers.

As of now, customers are guaranteed to receive only 36% of their dues.

• The approval to start the liquidation process comes 10 months after the trip Freeze Client withdrawals in July 2022, shortly after bankrupt hedge fund Three Arrows Capital (3AC) filed for bankruptcy.
• As informed of Judge Michael Wiles said that “no one is happy with the liquidation”, referring to customers disgruntled with the bankruptcy process and the outcome, according to Bloomberg. Common criticisms included the cost of bankruptcy, the amount paid to lawyers, monitoring of the case, and partial returns to creditors.
• Nevertheless, Wills stated that this was his only option as Voyager lacked the funds to repay the customers in full.
• “Hindsight being 20/20 – I’m sure everyone wishes something had happened better,” said Wiles. “We are where we are, trying to do the best we can where we are.”
• Voyager’s misfortunes continued long after Admission bankruptcy in July its initial plan a purchase deal FTX fell when the crypto exchange imploded in November. Voyager creditors subsequently subpoenaed FTX executives for information about plans to buy the company, probing whether it was a fair offer or just a publicity stunt.
• Voyager’s $1 billion buyout deal with Binance US also fell through last month, with the former citing a “hostile and uncertain regulatory environment in the United States.”
• The lender currently has only $630 million to repay $1.8 billion in customer claims, according to a May 5 court filing. If the pending dispute with FTX proves fruitful, its holding could increase.