Voyager Supports Users To Transfer Crypto After Platform Reopen In 30 Days

Key Points:

• Account holders will only be allowed to move their crypto off the site when the platform reopens, according to Voyager.
• When the 30-day deadline has expired, any crypto that remains on the site will be converted to cash.
• When there is a liquidation, the cash distribution is net of all expenses involved in liquidating and distributing the funds.

The Voyager Unsecured Creditors Committee (UCC) stated that when the platform reopens, account holders will only be able to transfer their cryptocurrencies from the platform.

After the 30-day window expires, any cryptocurrency remaining on the platform will be liquidated into cash and distributed via check or ACH. When a liquidation occurs, the cash distribution will be net of all costs incurred in liquidating and distributing the cash.

In addition, the UCC shared the mediation of the Alameda claim, saying that the parties have jointly selected a mediator and will apply to the court to confirm the mediator. The UCC also said there were plans to make some significant claims against third parties involved in Voyager but could not yet disclose details.

After the withdrawal of Binance.US from the agreement, the crypto lender was compelled to file for bankruptcy in the Southern District of New York to repay creditors. Voyager Digital has advised creditors that the first cash and cryptocurrency disbursements would occur over the next few weeks.

As Coincu reported, the insolvent crypto lender said that any plan for disposing of the firm’s assets must be registered before it can be implemented. The liquidation process will set out the specifics of how creditors will receive distributions from Voyager.

Voyager will also liquidate its assets and cease operations after failing to reach an agreement on a sale to either FTX.US or Binance.US.

A handful of digital assets on the site that cannot be deleted will be liquidated and returned to users by the insolvent crypto lender. Several other major cryptocurrencies on the platform will 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.

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

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Harold

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