Bankruptcy crypto lender Voyager Digital said customers will soon recover 35 percent of their cryptocurrency deposits, following a rocky road over the past few months of multiple failed buyouts.
US Bankruptcy Judge Michael Wiles approved Voyager’s liquidation plan on Wednesday, which will allow the firm to return about $1.33 billion in crypto assets to its customers, according to a report from Reuters.
This would put an end to Voyager’s efforts to reorganize under Chapter 11, Reuters reported.
The Voyager Official Committee of Unsecured Creditors said they were working with the firm to “go effective under the plan as soon as possible (as early as this Friday).”
A rough road
Since Voyager filed for bankruptcy in July 2022 due in part to its exposure to crypto hedge fund Three Arrows Capital, the company has been trying to get support from big names in crypto.
At first, now bankrupt FTX secured the approval of a US Bankruptcy Court to take Voyager’s assets.
Then it collapsed.
Then, Binance tried its hand, coming in with an offer that valued Voyager at $1 billion.
But the exchange recently pulled out of the deal, citing a “hostile” regulatory climate in the US, after the US Securities and Exchange Commission and New York’s financial regulator tried to block the deal.
“While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community,” Binance said in April.
When Binance left, Voyager said the Chapter 11 plan “allows for direct distribution of cash and crypto to customers.”
“Consistent with the plan, we will now move swiftly to return value to customers via direct distributions. We will provide more information on next steps and any actions customers need to take in the coming days,” Voyager said in April.
