Voyager Digital reported that they have successfully retrieved a total of $484.35 million through agreements with FTX, Three Arrows Capital, and their Directors and Officers insurance policy.
In simpler terms, the court in New York’s Southern District received an update from the company regarding their ongoing process of collecting and distributing assets to creditors after facing financial hardship.
$450 Million FTX Settlement and Major Recoveries
Based on information from a filing dated April 9, around $450 million of the recovered funds originated from a settlement with FTX.
Approximately a quarter of the debts owed to Voyager’s creditors, including accrued interest, will be settled in the forthcoming distribution. This payment is intended to bring significant relief to the creditor group.
The FTX creditors have consented to giving up their claim to the $5 million deposit kept aside during Voyager’s bankruptcy auction. This amount will then be transferred to the estate of the Wind-Down Debtor.
Furthermore, FTX’s debtors and the Wind-Down Debtor relinquish and abandon all disputes they have against one another. Any prior proofs of claim are withdrawn as part of this accord. Consequently, the ongoing FTX case will be dismissed.
Voyager additionally disclosed that it stands to gain around $675 million from its ongoing lawsuits with Three Arrows Capital (3AC). Of this total, about $20.43 million is allocated to Voyager as their share of the initial payment from 3AC.
As the plan goes through court hearings, the person in charge expects more disbursements and liquidates some possessions.
Alongside these communities, Voyager made an advancement in D&O insurance mediation. This development will set aside at least $14.35 million for the company’s creditors, providing additional support for its ongoing rebuilding process.
Operational Challenges
Despite the good news about Voyager’s progress, the company encounters operational issues. One of these hurdles is dealing with uncashed checks worth around $17 million in total. Around 187,000 checks, accounting for roughly 65% of this amount, are for under $25.
After April 20, 2024, any checks still outstanding with Voyager will be deemed as uncashed and will be cancelled.
Voyager is handling the fallout of a data breach involving FTX that makes their bankruptcy process more intricate. An investigation continues to determine the cause and effects of this breach, which exposed creditor information.
In July 2022, Voyager began the process of filing for bankruptcy protection under Chapter 11 due to significant turbulence in the cryptocurrency market, including the downfall of the Terra ecosystem earlier in May.
Starting from May 2023, Voyager’s proposed restructuring plan indicated that customers would be able to recover approximately 35.7% of their losses in either cryptocurrency or cash. Later in November 2023, the crypto exchange reached a settlement with the Federal Trade Commission (FTC), committing to providing $1.65 billion in financial compensation.
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2024-04-12 01:00