Voyager Digital, a crypto lending firm, has announced that it will be compensating its customers by allowing them to reclaim approximately 35% of their cryptocurrency deposits. This decision comes after the failed acquisition by Binance.US and as the company prepares to conclude its operations. The ruling by Judge Michael Wiles in Wednesday’s hearing paved the way for this compensation to be granted to the affected customers.
Under the liquidation plan approved by Judge Wiles, Voyager has allocated around $1.33 billion in crypto assets to its customers, effectively concluding its attempts to reorganize under Chapter 11. The bankruptcy filing by Voyager in July was driven by market volatility in the cryptocurrency sector and a substantial loan extended to the crypto hedge fund Three Arrows Capital (3AC).
Despite efforts to sell its assets during the bankruptcy proceedings, Voyager faced setbacks in finding a suitable buyer. An initial deal with FTX worth $1.42 billion fell through when FTX filed in November, and a subsequent offering by Binance.US for $1.3 billion was withdrawn on April 25 due to a “hostile environment and regulatory uncertainty.”
The fate of Voyager’s customers is closely tied to the legal proceedings surrounding the collapse of the FTX cryptocurrency exchange last year. FTX is seeking to recoup $445.8 million in loan repayments owed by Voyager, which could impact the chances of repayment for Voyager’s customers. The resolution of this case holds significant implications and may provide renewed hope for the affected customers.
Read more:
- Voyager Customers To Receive 35.72% Of Claim Amount In Initial Recovery
- Binance US Terminates Asset Purchase Agreement With Voyager Amidst Uncertain Regulatory Climate