Voyager Digital: Expect Some Cash Or Crypto Back For The Creditor Reimbursement Plan

Key Points:

• Voyager Digital has informed creditors that their initial cash and cryptocurrency distributions will be made “within the next few weeks.” 
• After Binance US pulled out of the arrangement, the crypto lender was forced to file for bankruptcy in the Southern District of New York in order to repay creditors.

Voyager Digital has offered an update on the creditor reimbursement scheme.

Following Binance’s exit from the Voyager Digital transaction on April 25, the now-defunct crypto lender recently informed creditors that they can anticipate their initial cash and crypto payouts “within the next few weeks.” 

Voyager Digital has issued a creditor update. According to the firm’s tweet, they may be able to anticipate some cash or cryptocurrency back “in a few weeks.” This update follows the TSX-listed crypto lender’s long and challenging journey. Voyager Digital suspended withdrawals on July 1, 2022, and filed for bankruptcy three days later. Since then, the failed company has been navigating the bankruptcy process after being on the verge of being acquired by Binance US.

After Binance US pulled out of the arrangement, the crypto lender was forced to file for bankruptcy in the Southern District of New York in order to repay creditors. Despite the difficulties, Voyager Digital claims to be making progress. The firm revealed in a tweet on Thursday that they are “in the process of finalizing liquidation procedures.” Voyager also informed creditors that the liquidation procedures had to be completed before the proposal could be implemented.

While Voyager is pushing through with their plan to reimburse creditors, there is still the possibility of opposition. Parties will have 10 full days to object to the idea, according to the firm. If no objections are made, Voyager aims to make the plan “effective” at that time. If an objection is raised, however, the court will convene a hearing to consider the issue before the plan can be implemented. 

The plan included a provision outlining what would happen if the Binance US transaction fell through, allowing Voyager to begin liquidating assets. “Voyager is also finalizing everything internally that is required to make distributions to creditors,” the firm says. We anticipate that initial distributions will occur in the coming weeks.” Reactions to Voyager Digital’s attempt to compensate creditors have been divided. While many clients are happy with the progress, some are dissatisfied.

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.

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