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Voyager Digital, once ensnared in bankruptcy, has achieved a significant breakthrough in its recovery efforts. The company has amassed $484.35 million through settlements, chiefly with FTX, marking a pivotal moment in its quest to compensate creditors.
This substantial sum, predominately from the FTX settlement, constitutes around 25% of the total claims by Voyager’s creditors.
Voyager Plans For the Next Stage of Repayments
Under the bankruptcy proceeding, Paul Hage, the Plan Administrator of Voyager, announced the settlements with FTX, D&O Insurance, and Three Arrows Capital. Consequently, plans are underway to disburse these funds expediently.
Amidst a tumultuous period for the cryptocurrency sector, Voyager’s financial distress became public in July 2022, leading to its bankruptcy filing.
The saga took a dramatic turn in October 2023 when regulatory bodies accused former CEO Stephen Ehrlich of deceit. The allegations, posed by the Commodity Futures Trading Commission (CFTC), painted a grim picture of mismanagement. They claimed that Ehrlich’s actions precipitated the platform’s downfall, causing significant investor losses.
Read more: What Getting ‘Rekt’ Means: A Crypto Term Explained
Nonetheless, the bankruptcy team has showcased resilience. Beyond the FTX deal, the company has a substantial claim in the Three Arrows Capital litigation, totaling approximately $675 million. Of this, Voyager’s direct share is $20.43 million, illustrating the ongoing efforts to recuperate lost assets.
Moreover, the reinstatement of customer withdrawals in June 2023 marked a turning point. It allowed users to reclaim over $250 million within a month, reflecting a regained trust in Voyager’s operations.
The company anticipates further disbursements from asset liquidations and litigation settlements in the future. A notable mediation with D&O Insurance will contribute at least $14.35 million to the creditor compensation pool.
Operational challenges persist, notably with unclaimed funds. Voyager reports about 270,000 uncashed checks, totaling $17 million. Most are under $25. The firm has announced an April 20 deadline for claiming these funds, stressing the importance of timely action.
“I encourage all creditors to deposit any uncashed checks or request a check re-issuance, if necessary, prior to April 20, 2024. Any initial distribution checks that remain outstanding on April 20, 2024, will be canceled and deemed unclaimed,” Hage said.
The company’s journey is also marred by security concerns, highlighted by a significant data breach during its bankruptcy process. This breach exposed customer information, fueling worries about data security and privacy.
Read more: 9 Crypto Wallet Security Tips To Safeguard Your Assets
Voyager has since engaged experts to investigate the breach’s scope and origin.
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