Voyager Digital Users Expect To Receive Initial Compensation Before June 1

Key Points:

• According to the official announcement, the Voyager Digital liquidation process begins as early as May 19.
• Once the plan goes into effect, the program administrator will take over the debtors, and the company aims to distribute the initial compensation by June 1.
• Before that, the judge approved the Voyager Liquidation Plan to return customers 35% of crypto assets.

According to an official announcement from bankrupt crypto lending platform Voyager Digital, its users are expected to receive initial compensation by June 1.

Voyager’s Unsecured Creditors Committee (UCC) tweeted that it is working with Voyager to put this liquidation plan into effect as soon as possible and as early as May 19.

Once the plan goes into effect, the committee will be dissolved, the program administrator will take over the liquidated debtors, and we are still working toward the initial distribution of compensation by June 1.

Earlier, it was reported that a judge approved Voyager’s liquidation plan, which could return 35% of crypto assets to customers.

US Bankruptcy Judge Michael Wiles approved Voyager Digital’s proposed liquidation plan at a Manhattan court hearing, allowing the company to return approximately $1.33 billion in crypto assets to customers, accounting for $1.3 billion, 0.35% of total deposits and closing restructuring under US bankruptcy law.

Voyager Digital filed for Chapter 11 bankruptcy last July amid volatile crypto markets and defaulted on a large loan to crypto hedge fund Three Arrows Capital (3AC).

Following the bankruptcy, the crypto lending platform tried to sell its assets to FTX for $1.42 billion, but the deal fell through due to FTX’s bankruptcy last November. Last month, Voyager said it would liquidate its assets and close its business after Binance US rejected a deal to buy Voyager’s assets for $1 billion.

The recovery of assets for Voyager customers largely depends on the outcome of the lawsuit with FTX. FTX is seeking to recover a $445.8 million loan repayment for Travel before bankruptcy.

If crypto lending platforms prevail in the FTX case, customers should expect a recovery rate of 63.74%, court documents show. Voyager Digital plans to reimburse customers in the same cryptocurrency that is in the customer’s account. For cryptocurrencies that Voyager does not support, as well as Voyager’s proprietary VGX token, the company will use stablecoin USDC to reimburse customers.

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