Voyager Now Moves To Liquidation Plan After Failed Deals With Binance.US

Key Points:

• Voyager Digital will now liquidate its assets after plans to sell them to FTX.US and, most recently, Binance.US fell through.
• A portion of the platform’s digital assets that cannot be removed will be liquidated and refunded to clients.

According to Voyager Digital’s lawyers, the insolvent crypto lender will self-liquidate its assets and cease operations after failing to reach an agreement on a sale to either FTX.US or Binance.US.

According to a Friday filing, Voyager will liquidate and restore to consumers a number of digital assets on the platform that cannot be removed. Among them are big cryptocurrencies such as Algorand (ALGO), Celo (CELO), and Avalanche (AVAX).

The filing shows a number of other major cryptocurrencies on the platform will not be liquidated but will instead be returned to customers in digital form, albeit at a recovery rate of around 36% – an appallingly low recovery rate compared to both estimates of their recovery rate of 72-73% if either of the acquisition plans were successful, as well as recovery estimates for creditors of other bankrupt crypto platforms. Celsius’ creditors, for example, are expected to collect around 70% of their shares.

If collapsed crypto trading company Alameda Research’s quest to recoup $446 million from Voyager’s estate fails, the recovery rate might grow. In addition to reserving $446 million of the estate’s assets for the Alameda action, Voyager’s attorneys are retaining an additional $259.6 million for litigation fees, administrative claims, and various other holdbacks.

Creditors with any of the 67 supported tokens, including BTC and ETH, will be able to withdraw the maximum percentage of their crypto immediately. Voyager will sell any of the 38 unsupported tokens, including SOL and ALGO, and pay customers back in USDC, a stablecoin.

The statement comes only ten days after Binance.US suddenly backed out of a $1 billion agreement to buy Voyager Digital’s assets when the US government intervened to prohibit a portion of it. Binance.US, the crypto exchange Binance’s sibling company that purports to be controlled separately, backed out of a $1.3 billion restructuring plan to purchase Voyager assets last week. It noted the United States hostile and unpredictable regulatory environment.

Prior to the agreement with Binance.US, the crypto lender made a similar offer to FTX. As FTX went bankrupt with Voyager in November, the first agreement was canceled.

Since then, the company has been figuring out ways to restore assets to investors who employed its services.

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Harold

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