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News

Voyager’s Creditors Now Reach A Settlement Agreement With FTX/Alameda

February 23, 2023 - Around 2 mins mins to read

Key Points:

  • Voyager’s Unsecured Creditors Committee (UCC) has reached a consensus on an equal rating with FTX/Alameda.
  • Previous failed FTX/Alameda sales will also be preserved.
  • In addition, Alameda must waive any distribution rights for Alameda’s equity interest in the crypto broker.
The Voyager Unsecured Creditors Committee (UCC) has reached a settlement with Travel and FTX/Alameda to effectively resolve the dispute between the two parties.
Voyager's Creditors Now Reach A Settlement Agreement With FTX/Alameda

According to the latest announcement from UCC, “the agreement not only preserves resources but provides a direct, material benefit to Voyager’s debt.”

Alameda, which collapsed with Sam Bankman-Fried’s empire, has agreed to settle disputes with Voyager’s creditors by withdrawing $75 million in damages or
contributing it to Voyager OpCo to benefit creditors. In addition, Alameda must “waive any right to a distribution on account of Alameda’s equity interests” in the crypto broker or contribute it to Voyager OpCo.

Previous failed FTX/Alameda sales will also be preserved. These companies must not oppose Voyager’s chapter 11 plan.

Voyager's Creditors Now Reach A Settlement Agreement With FTX/Alameda

Previously, Voyager Digital’s creditor, which claims to have a $1.7 million claim against the company, has requested the appointment of a trustee in the bankruptcy proceedings.

The creditor alleges that the crypto broker has failed to disclose relevant information and has engaged in improper conduct, including withholding assets and diverting funds. The company for bankruptcy in Canada in January 2022, citing a technical glitch that filed in over $87 million in losses for its customers.

The unsecured debtor of the crypto broker also has been granted permission to call Sam Bankman-Fried as a witness in a bankruptcy hearing. The debtors are seeking to determine the extent of the company’s financial difficulties and whether the company misled investors.

The US Federal Trade Commission (FTC) has filed an objection to Voyager’s proposed plan to emerge from bankruptcy, citing concerns over the company’s treatment of its customers. The FTC alleges that the crypto broker is engaged in deceptive and unfair practices, such as falsely advertising that its assets were insured and misleading customers about the security of its platform.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

Alameda

FTX

UCC

Voyager

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Voyager’s Creditors Now Reach A Settlement Agreement With FTX/Alameda

Key Points:

  • Voyager’s Unsecured Creditors Committee (UCC) has reached a consensus on an equal rating with FTX/Alameda.
  • Previous failed FTX/Alameda sales will also be preserved.
  • In addition, Alameda must waive any distribution rights for Alameda’s equity interest in the crypto broker.
The Voyager Unsecured Creditors Committee (UCC) has reached a settlement with Travel and FTX/Alameda to effectively resolve the dispute between the two parties.
Voyager's Creditors Now Reach A Settlement Agreement With FTX/Alameda

According to the latest announcement from UCC, “the agreement not only preserves resources but provides a direct, material benefit to Voyager’s debt.”

Alameda, which collapsed with Sam Bankman-Fried’s empire, has agreed to settle disputes with Voyager’s creditors by withdrawing $75 million in damages or
contributing it to Voyager OpCo to benefit creditors. In addition, Alameda must “waive any right to a distribution on account of Alameda’s equity interests” in the crypto broker or contribute it to Voyager OpCo.

Previous failed FTX/Alameda sales will also be preserved. These companies must not oppose Voyager’s chapter 11 plan.

Voyager's Creditors Now Reach A Settlement Agreement With FTX/Alameda

Previously, Voyager Digital’s creditor, which claims to have a $1.7 million claim against the company, has requested the appointment of a trustee in the bankruptcy proceedings.

The creditor alleges that the crypto broker has failed to disclose relevant information and has engaged in improper conduct, including withholding assets and diverting funds. The company for bankruptcy in Canada in January 2022, citing a technical glitch that filed in over $87 million in losses for its customers.

The unsecured debtor of the crypto broker also has been granted permission to call Sam Bankman-Fried as a witness in a bankruptcy hearing. The debtors are seeking to determine the extent of the company’s financial difficulties and whether the company misled investors.

The US Federal Trade Commission (FTC) has filed an objection to Voyager’s proposed plan to emerge from bankruptcy, citing concerns over the company’s treatment of its customers. The FTC alleges that the crypto broker is engaged in deceptive and unfair practices, such as falsely advertising that its assets were insured and misleading customers about the security of its platform.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

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