Bankrupt crypto lender Voyager Digital predicts 35% customer payout
Crypto lender Voyager Digital said Wednesday that customers will soon recover about 35% of their cryptocurrency deposits as the company winds down operations after a failed buyout attempt by crypto exchange Binance.US.
U.S. Bankruptcy Judge Michael Wiles approved Voyager’s liquidation plan at a court hearing in Manhattan, allowing the company to return about $1.33 billion in crypto assets to customers and end its efforts to reorganize under Chapter 11.
Customers may be able to make withdrawals by June 1, Voyager’s official creditors committee said. Any distribution beyond the initial 35% would depend on the result of future litigation.
Voyager filed for bankruptcy protection in July, citing volatility in cryptocurrency markets and a default on a large loan made to crypto hedge fund Three Arrows Capital (3AC).
Two sale attempts failed during Voyager’s bankruptcy. It initially sought to sell its assets for $1.42 billion to FTX, a deal that failed when FTX imploded in November. Binance.US stepped in with a $1.3 billion offer, but called off the deal on April 25, citing a “hostile and uncertain regulatory climate.”
This report’s information was first seen on ZAWYA; to read more, click this link.