Voyager's Creditors Now Reach A Settlement Agreement With FTX/Alameda
Key Points:
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.
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.
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Harold
Coincu News
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