Voyager Digital secured court approval to release only 35% of the funds to the customers, against their claims.
Voyager Digital was a popular Crypto lending platform but in mid of the last year, the platform collapsed badly. At the time, the Voyager team said that their financial position was disturbed citing volatility in cryptocurrency markets and a default on a large loan made to crypto hedge fund Three Arrows Capital (3AC). On 5 July 2022, the Voyager team filed for bankruptcy under the Chapter 11 code.
On 17 May 2023, Bloomberg reported that Voyager Digital secured regulatory approval in the court to release only 35% of the funds, against the creditor’s claim.
In short, if a Voyager creditor claims $100 then he/she will get only $35, and also the same rule will apply to the high amount of claims.
At present, Voyager is holding nearly $1.3 billion worth of assets. The Voyager bankruptcy team confirmed that they will make a decision on the rest of the funds later when the dispute with a third party will be over.
FTXUS, BinanceUS, & Voyager
Initially, the FTXUS crypto exchange was very close to acquiring the Voyager platform following a bid win but in Nov 2022 FTX exchange itself went bankrupt.
Later BinanceUS exchange planned to acquire this collapsed lending platform but in the final phase of the acquisition plan, the Binance team decided not to purchase Voyager citing the unclear crypto regulatory environment in the US jurisdiction.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.