Failed crypto lender Voyager Digital could begin liquidation on Friday, aiming to return cash and crypto to customers by June 1.
A bankruptcy court judge approved Voyager’s liquidation proceedings in a hearing Wednesday, 10 months after Voyager filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York
“We are working with Voyager to get the plan into effect as soon as possible (as early as Friday),” said the Voyager Official Committee of Unsecured Creditors. said on Twitter. “We are still working to make the first distributions available by June 1st.”
Voyager’s liquidation comes next Binance.US pulled out of a court-approved purchase deal the company’s assets last month. The plan included a “toggle” option for liquidation in the event that Binance.US ran out, which Voyager then initiated. The deal was government-controlled. Binance.US blamed US regulations when it ended the plan.
Customers are expected to recover nearly 36% of their claim amounts initially, according to Voyager, though that percentage could eventually rise depending on the success of a claims dispute between Voyager and failed crypto giant FTX. Voyager customers can receive their recovery in cash, supported coins, or via USDC for unsupported coins and Voyager’s VGX token.
Disclaimer: The Block’s former CEO and majority owner has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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