Crypto broker Voyager Digital announced on Wednesday that its customers can expect to recover approximately 35% of their cryptocurrency deposits, indicating that they will receive a partial return on their holdings.
This comes as the bankrupt company initiates the process of winding down its operations as acquisition deals by FTX US and, more recently, Binance US, have fallen through.
During a court hearing in Manhattan, U.S. Bankruptcy Judge Michael Wiles granted approval for Voyager’s liquidation plan. The ruling allows the company to proceed with returning approximately $1.33 billion worth of crypto assets to its customers. Additionally, it marks the conclusion of Voyager’s efforts to reorganize under Chapter 11 bankruptcy.
Voyager plans to reimburse its customers by returning the same type of cryptocurrency that was held in their accounts, dismissing speculation suggesting that it would consider an alternative payment method. Specifically, major coins, including Aave (AAVE), Ethereum (ETH), Bitcoin Cash (BCH), and 65 others, will not be liquidated but rather returned to customers in digital form.
However, for deposits consisting of unsupported cryptocurrencies that cannot be withdrawn from Voyager’s platform, as well as for Voyager’s proprietary VGX token, customers will be repaid using the stablecoin USDC. This approach ensures that customers receive value equivalent to their original holdings, even for assets that cannot be directly withdrawn.
Meanwhile, the ultimate recovery prospects for Voyager customers are closely tied to the resolution of the litigation involving FTX, as well as the amount of recovery that FTX offers its own creditors.
FTX’s failed trading arm, Alameda Research, asked a court to claw back $445 million from Voyager Digital, which it said SBF’s empire paid to the crypto lender before collapsing into bankruptcy.
Alameda Research seeks to recover those loan payments from the troubled digital asset manager since they were made close to FTX’s bankruptcy filing. Under certain circ*mstances, federal laws consider such payments eligible to be ‘recoverable’ and thus could be used to repay FTX’s own creditors.
According to court filings, if Voyager achieves a successful outcome in the FTX litigation, customers can expect a recovery rate of approximately 63.74%.
The development comes shortly after Binance.US terminated its agreement to acquire Voyager as federal regulators were keen to block the deal in court.
For its part, the committee representing Voyager creditors in bankruptcy proceedings tweeted that it was “incredibly disappointed with this decision and is investigating potential claims against Binance.US.”
A federal judge temporarily halted the proposed deal to sell Voyager Digital’s assets to Binance US in March after a request by the United States government for an emergency stay.
FAQs
According to the filing, Voyager's customers will receive an initial recovery of 36% of their crypto holdings – an abysmally low recovery rate compared to both estimates of their recovery rate of 72-73% if either of the acquisition plans were successful, as well as recovery estimates for creditors of other bankrupt ...
Where did the FTX funds go? ›
FTX founder Sam Bankman-Fried and senior staff spent customer funds on technology investments, luxury real estate and political contributions, among other things. The missing funds are at the heart of Bankman-Fried's criminal trial, which kicked off in Manhattan federal court this week.
What is voyager crypto? ›
Voyager is a broker mobile application that enables users to buy, sell, swap, and invest in cryptocurrencies.
Is Voyager paying back customers? ›
Voyager, a crypto trading platform founded in 2018, was one of many digital assets firms to go bust and file for Chapter 11 bankruptcy amid a crash in crypto prices in 2022. The exchange gained court approval last May to wind down operations and pay back customers a portion of what they're owed.
Did Voyager customers get money back? ›
Voyager intends to repay customers with the same type of cryptocurrency they had in their accounts. For deposits held in unsupported cryptocurrencies that cannot be withdrawn from Voyager's platform and for Voyager's proprietary VGX token, Voyager will instead repay customers using the stablecoin USDC.
Is my money in Voyager safe? ›
Voyager is not a chartered bank or savings association. FDIC insurance does not extend to crypto assets, such as the USD Coin stored on Voyager's platform. Nor did FDIC insurance protect consumers' U.S. dollar deposits against Voyager's failure.”
Can I transfer my crypto out of Voyager? ›
Back in your Voyager account, look for the “Withdraw” or “Send” option for the chosen cryptocurrency. Enter your Coinbase wallet address generated in Step 4, specify the amount you want to transfer, and review the transaction details carefully. Double-check all the information and confirm the transfer.
Has Voyager sent out checks? ›
Completing the Chapter 11 plan that the bankruptcy court approved in March 2023, Voyager issued approximately 627,000 checks worth $131 million for the initial distribution to creditors.
How much will FTX customers get back? ›
Under the proposed reimbursem*nt plan, customers and creditors owed $50,000 or less will get about 118% of their claim, according to the filing with the U.S. Bankruptcy Court for the District of Delaware. That covers about 98% of FTX customers.
Will I ever get my FTX money back? ›
FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors.
Sequoia Capital likely suffered the greatest loss for an outside investor in the exchange with its $200 million investment, which peaked at $350 million in January 2022, according to data obtained by Forbes. RELATED: Who Is FTX Founder Sam Bankman-Fried?
What will happen to my voyager digital shares? ›
(the "Company") announces that it will redeem all of its outstanding common shares and variable voting shares (collectively, the "Shares") in accordance with the order (the "Order") granted by the Superior Court of Justice of Ontario on May 24, 2023 and the implementation of the joint plan of reorganization of Voyager ...
What happens to Voyager digital stock holders? ›
Voyager has filed a Chapter 11 bankruptcy petition. According to the company, account holders with cryptocurrencies in their Voyager accounts will receive a combination of cryptos, proceeds from Three Arrows Capital recovery, common shares in a newly reorganised company and VGX tokens.
Is anyone suing Voyager? ›
Kaye, and Barbara Lewis of The Moskowitz Law Firm PLLC filed a putative nationwide class action against Mark Cuban, the Dallas Mavericks, and Stephen Ehrlich, founder and CEO of Voyager Digital, seeking to recover damages on behalf of the more than 3.5 million Voyager customers who purchased Voyager's Earn Program ...
What happens to Voyager Digital stock holders? ›
Voyager has filed a Chapter 11 bankruptcy petition. According to the company, account holders with cryptocurrencies in their Voyager accounts will receive a combination of cryptos, proceeds from Three Arrows Capital recovery, common shares in a newly reorganised company and VGX tokens.
What happens if Voyager goes out of business? ›
The FDIC only offers protection of funds in the event of a bank's failure, not a crypto exchange. For its part, Voyager says it's working through a “reconciliation and fraud prevention process” with its banking partner, after which users will be able to regain access to their cash.
How much is a Voyager worth? ›
2021 Chrysler Voyager Value - $17,594-$29,639 | Edmunds.
