Voyager Digital Set to Start Releasing Frozen Cryptocurrency Funds

The court has allowed bankrupt crypto lender Voyager Digital to self-liquidate and start the process of repaying customers a part of their initially frozen assets.

On Wednesday, a ruling from US Bankruptcy Court Judge Michael Wiles endorsed Voyager's liquidation strategy after unsuccessful talks to sell the company to FTX or Binance, as reported by Bloomberg. writes .

The anticipated payment of 36% is significantly lower than the estimated recovery rate of 72%-73% that could have been achieved had the acquisition proceeded. Binance.US If Alameda Research fails to reclaim $446 million from Voyager’s estate, it is possible that the recovery rate may increase.

The legal team representing Voyager is also holding back $259.6 million in additional funds, which includes fees, administrative claims, and various other reserves. Customers who have any of the 67 supported tokens like Bitcoin and Ether on the platform can withdraw the currently held amounts, while some minor crypto assets, including AVAX, will be liquidated and returned to users. Algorand (ALGO), Celo (CELO), and Avalanche According to the official committee of unsecured creditors, Voyager customers may be able to access their funds as early as June 1. Many customers have raised concerns about the costs associated with the bankruptcy, legal fees, and the partial recovery of their cryptocurrencies.

Following Voyager's bankruptcy filing in July 2022, the influence of Three Arrows Capital has posed challenges to the company as it strives to return investments to its stakeholders.

Bankruptcy of Voyager

Shortly after taking control of Voyager's assets, FTX faced its own collapse, leading to uncertainty about the overall situation. At the time, Binance proposed a $1 billion offer for Voyager, but in late April, the exchange withdrew, citing a 'hostile' regulatory environment in the United States, especially after intervention from the US Securities and Exchange Commission and New York’s financial regulator sought to block the transaction. The recovery rate for Voyager clients is alarmingly low. In contrast, creditors of Celsius, another failing cryptocurrency platform, are projected to recoup about 70% of their investments.

Voyager Digital represents the second incident of a cryptocurrency platform failing to appear at court hearings. They have received authorization to distribute $270 million of frozen funds to their 'customers.' Their legal representative requested $350 in mid-July. UK Court Authorizes Service of Legal Documents through NFTs Johnny Depp's NFT Experiences Price Surge Following Court Verdict

Binance and FTX Engage in NYC Bidding War for Voyager Digital's Assets, Bidding Closes on September 29

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