Cryptocurrency brokerage Voyager's bankruptcy plan was approved by the US Bankruptcy Court for the Southern District of New York on May 17, Reuters reported. Justice Michael Wiles' order approving the proceedings was released by the court a day earlier.
The so-called third bankruptcy plan was filed on May 5 after Binance.US pulled out of a plan to buy $1 billion worth of Voyager assets on April 25. The deal overcame resistance from the US government before Binance.US reversed at the last minute . Voyager will now go into liquidation that is, distribute its assets to creditors.
In September, FTX US won an auction for Voyager assets for $1.4 billion prior to its deal with Binance.US, but the auction fell through as FTX collapsed. According to reports, the sale of FTX will allow creditors to obtain 72% of the value of their accounts. FTX sued Voyager for $445.8 million in January, claiming that its loan repayments in 2022 could be recovered because they occurred before FTX's bankruptcy. Voyager says on its website that customers can now expect to receive 35 .72 percent of their initial claim in cryptocurrency or cash via the Voyager app after 30 days. According to Voyager, as of May 8, it had $1.33 billion in assets available for recovery, including $629.8 million available for preliminary recovery and $1.8 billion in claims. If FTX/Alameda Research's priority recovery claim is unsuccessful,Creditors may increase the size of their initial recovery. Voyager withheld $445 million to pay the claim. In addition, Voyager is still likely to recover funds from bankruptcy Three Arrows Capital. Voyager Issues Default Notice on 15,250 Bitcoin Loan to Three Arrows and $ 350 million in USDC, late June. Those assets were valued at $655 million at the time and around $768 million at the time of writing.
