Soon, Customers can Access the Voyager App to View Available Withdrawal Amounts
Voyager Digital, a cryptocurrency brokerage, is making preparations to reopen its app and enable customers to withdraw their funds, nearly a year after filing for Chapter 11 bankruptcy. The bankruptcy plan administrator, Paul Hage, stated in a court filing on June 14 that the Voyager app would be updated by June 15 to display the withdrawal amount. Hage estimated that the withdrawal period would commence between June 20 and July 5.
After obtaining court approval on May 17, the bankruptcy plan will soon be implemented, ensuring customers receive an initial payout of 35.72% of their claims. This payout can be received either by withdrawing cryptocurrency through the Voyager app or in cash after a 30-day period. The plan aims to provide customers with a partial recovery of their claims through these designated withdrawal options.
đ¨ Voyager Court adjourned for the day
Fee examiners findings approved by the judge
App will come back online on or around 15 June
Estimated window for withdrawals opening 20 June to 5 July
30 days to withdraw once window opens
all creditors will receive 35.72 initial⌗ Neville đşđ¸ (@neville_p) June 14, 2023
In the filing, it was highlighted by Paul Hage that the bankrupt crypto hedge fund Three Arrows Capital has an outstanding debt of $650 million to Voyager. Therefore, although the first tranche of withdrawals permits slightly over 35% of customer funds to be withdrawn, the primary focus will subsequently shift towards recovering additional assets that can be distributed to creditors once the initial distribution is concluded. This implies that efforts will be concentrated on reclaiming further assets to facilitate additional payouts to creditors beyond the initial withdrawal phase.
Furthermore, an additional $445 million of customer funds could potentially be accessible to creditors, subject to the final resolution of Alameda Research’s preference claim against Voyager. However, this resolution is not anticipated to occur until at least mid-September 2023. The outcome of this claim will determine the availability of the mentioned funds and their subsequent distribution to creditors.
đ¨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! pic.twitter.com/Y6IDAOgeT7
— EthDaddy đ´ââ ď¸ (@ETHjuiced) June 14, 2023
Following its initial bankruptcy filing on July 5, Voyager had previously presented two bankruptcy plan proposals, both of which ultimately fell through. Despite these previous attempts, the company was unable to secure approval for the proposed plans.
Voyager’s initial attempt at a bankruptcy plan involved a $1.4 billion deal with FTX’s U.S. arm, FTX.US. However, this deal collapsed as FTX filed for bankruptcy. Following that, a $1 billion deal with Binance.US also fell through on April 25 when Binance.US withdrew from the agreement, citing the “hostile and uncertain regulatory climate in the United States” as the reason for its decision.
Also Read:Â FTX debtors dispute Genesisâ claim of zero value for âcriticalâ claims.
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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