A motion greenlit by a judge has paved the way for debtors of the collapsed cryptocurrency exchange FTX to reach a substantial $450 million settlement with the bankrupt firm Voyager Digital. The approval came through an April 29 filing with the U.S. Bankruptcy Court in Delaware, where Judge John Dorsey gave the nod to the terms of the agreement between FTX and Voyager. This accord marks a significant step forward in Voyager's efforts to compensate creditors.
The agreement sets forth a plan wherein Voyager would resolve all claims with FTX, with the aim of providing compensation to the company's debtors. Per the terms, if approved, Voyager and FTX would collectively return $5 million held in escrow and an additional $445 million sourced from Alameda Research, currently entangled in loan repayment litigation, to the company's creditors. FTX, in turn, would relinquish any rights to these funds.
Representation for Voyager Digital and its debtors, led by attorney Paul Hage, inked the agreement alongside FTX restructuring officer and CEO John Ray III, with both parties signing off on the deal as of April 4. This settlement with FTX represents a pivotal development in Voyager's ongoing pursuit of solutions since its descent into bankruptcy in July 2022, precipitated by the downturn in the cryptocurrency market.
As part of Voyager's efforts to make amends, it has also received corresponding claims totaling approximately $20 million from Three Arrows Capital and roughly $14 million from directors and officers insurance companies. The overarching restructuring plan, slated to kick off in May 2023, outlines provisions for Voyager customers to recoup 35.7% of their claims in either cryptocurrency or fiat currency.
In a parallel legal saga, former Voyager CEO Stephen Ehrlich is facing lawsuits from both the U.S. Commodity Futures Trading Commission and the Federal Trade Commission for alleged deceptive statements. As of the latest update, these cases remain pending, underscoring the ongoing legal complexities surrounding Voyager's tumultuous journey.
