Failed crypto lender Voyager Digital could start liquidating on Friday, aiming to begin returning cash and crypto to customers by June 1.
A bankruptcy court judge approved Voyager’s liquidation procedures during a hearing on 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 go effective under the plan as soon as possible (as early as this Friday),” the Voyager Official Committee of Unsecured Creditors said on Twitter. “We are still working towards making initial distributions available no later than June 1.”
Voyager’s liquidation comes after Binance.US pulled out of a court-approved deal to buy the firm's assets last month. The plan included a liquidation "toggle" option in the event that Binance.US walked away, which Voyager then initiated. The deal had faced government scrutiny. Binance.US blamed the U.S. regulatory environment when it terminated the plan.
Customers are expected to initially recover nearly 36% of their claim amounts, according to Voyager, although that percentage could eventually increase depending on the success of a claim dispute between Voyager and the failed crypto behemoth FTX. Voyager customers can receive their recoveries in cash, supported coins, or via USDC for unsupported coins and Voyager’s VGX token.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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