Funds stuck on the platform of bankrupt crypto broker Voyager Digital may begin returning to creditors in “the next few weeks,” according to a committee of Voyager creditors.
A May 4 tweet from the Voyager Official Committee of Unsecured Creditors (UCC) said the now-defunct crypto firm is in the final stages of bankruptcy liquidation procedures. The UCC is “hopeful” that “initial distributions will begin within the next few weeks.”
4/ Voyager is also finalizing everything internally that is necessary to make distributions to creditors. We are hopeful that initial distributions will begin within the next few weeks.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023
The UCC’s update comes 10 days after Binance.US backed out of its initial agreement to purchase $1.02 billion worth of Voyager’s assets, with the crypto exchange blaming “the hostile and uncertain regulatory climate in the United States” as the reason for abandoning the deal.
Fortunately, Voyager’s restructuring plan includes a “toggle option” that allows the firm to pursue self-liquidation following the decision by Binance.US to pull out of the deal. This allows the bankrupt broker to distribute cash and crypto to customers directly via the Voyager platform.
The UCC was dismayed by Binance.US’ move, stating that it would be investigating potential claims against the cryptocurrency exchange for its last-minute change of heart.
1/ Around 2 hours ago, https://t.co/5sjac1H4CW purported to terminate the asset purchase agreement with Voyager. The Committee is incredibly disappointed with this decision and is investigating potential claims against https://t.co/5sjac1H4CW.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 25, 2023
It’s worth noting that Voyager must now file the liquidation procedures with the U.S. Bankruptcy Court for the Southern District of New York. According to the committee, parties have 10 days to file any objections with the liquidation procedures.
Related: Gemini ‘supportive’ of Genesis mediation, but frustrated over pacing
The UCC explained if no objections are filed in the next 10 days then “Voyager will “go ‘effective” with the plan.” If an objection is filed, however, the court will hold a hearing to consider the objection before the liquidation plan can go through.
An overwhelming majority, 97%, of the 61,300 Voyager customers who voted on the court’s restructuring plan voted in favor, although at that time voters believed that Binance.US would acquire the stranded assets.
Magazine: AI Eye: ‘Biggest ever’ leap in AI, cool new tools, AIs are the real DAOs