{"id":18715,"date":"2023-05-17T22:56:01","date_gmt":"2023-05-17T22:56:01","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/voyager-bankruptcy-plan-approved-customers-may-recover-35-7-of-claims-initially\/"},"modified":"2023-05-17T22:56:03","modified_gmt":"2023-05-17T22:56:03","slug":"voyager-bankruptcy-plan-approved-customers-may-recover-35-7-of-claims-initially","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/voyager-bankruptcy-plan-approved-customers-may-recover-35-7-of-claims-initially\/","title":{"rendered":"Voyager bankruptcy plan approved, customers may recover 35.7% of claims initially"},"content":{"rendered":"

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Crypto brokerage Voyager\u2019s bankruptcy plan was approved by the United States Bankruptcy Court for the Southern District of New York on May 17, according to a Reuters report. Judge Michael Wiles\u2019 order approving the procedure was published by the court a day earlier.\u00a0<\/p>\n

The so-called third bankruptcy plan was proposed on May 5 after Binance.US backed out of plans to buy $1 billion worth of Voyager assets on April 25. That deal had overcome resistance from the U.S. government before Binance.US\u2019 last-minute reversal. Voyager will now liquidate \u2014 that is, distribute its assets to its creditors. <\/p>\n

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Why are lawyers & executives for #Voyager<\/a> not forfeiting their pay if they didn’t do their jobs, especially when many are working other #crypto<\/a> bankruptcy cases? <\/p>\n

In what other industry can you fail at literally everything & still come out with millions?<\/p>\n

Make it make sense. https:\/\/t.co\/BQEu0J9h9H<\/p>\n

\u2014 VGX Heroes (@VGX_Heroes) May 15, 2023<\/a><\/p><\/blockquote>\n

In September, before the Binance.US deal, FTX US had won an auction for Voyager\u2019s assets, bidding $1.4 billion, but that sale fell through when FTX collapsed. The FTX sale would reportedly have allowed creditors to receive 72% of the value of their accounts. FTX sued Voyager for $445.8 million in January, claiming loan repayments it made in 2022 are liable to clawback because they occurred immediately prior to FTX\u2019s bankruptcy.<\/p>\n

Related: US officials appeal protections for Voyager execs in Binance.US sale<\/em><\/strong><\/p>\n

Voyager said on its website that customers could now expect to receive 35.72% of their claims initially, either in crypto through the Voyager app or in cash after 30 days. According to Voyager, it had $1.33 billion of assets for recovery as of May 8, of which $629.8 million was available for initial recovery, on claims of $1.8 billion.<\/p>\n

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Customers with crypto in their account(s) will receive in exchange a combination of the crypto in their account(s), proceeds from the 3AC recovery, common shares in the newly reorganized Company, and Voyager tokens.<\/p>\n

\u2014 Stephen Ehrlich (@Ehrls15) July 6, 2022<\/a><\/p><\/blockquote>\n

The size of the creditors\u2019 initial recovery could increase if FTX\/Alameda Research\u2019s claim for preferential recovery is unsuccessful. Voyager is holding back $445 million to cover that claim. In addition, Voyager may still recover funds from bankrupt Three Arrows Capital. Voyager\u00a0issued a notice of default to Three Arrows on a loan of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) in late June. Those assets were worth $655 million then and approximately $768 million at the time of writing.<\/p>\n

Voyager filed for bankruptcy on July 5. <\/p>\n

Magazine: Can you trust crypto exchanges after the collapse of FTX?<\/em><\/strong><\/p>\n