In a respite to Voyager Digital customers, the cryptocurrency brokerage is reportedly gearing up to reopen its app, which will enable the withdrawal of their funds. The development comes almost a year after it filed for Chapter 11 bankruptcy.
According to a court filing on June 14th, Voyager’s bankruptcy plan administrator, Paul Hage, stated that around June 15, the Voyager app would be updated to enable the viewing of the forms and amounts of their initial distribution. The estimated period of withdrawal will be between June 20 and July 5.
As per the bankruptcy plan approved in court on May 17, Voyager customers will initially receive 35.72% of what they are owed.
Hage also pointed out the $445 million funds which the FTX’s failed trading arm, Alameda Research, tried to claw back from Voyager Digital.
This amount could be made available to creditors pending a final resolution of Alameda Research’s preference claim against the lender. However, a resolution is not likely to happen until at least mid-September 2023.
The bankruptcy plan administrator also noted that bankrupt crypto hedge fund Three Arrows Capital (3AC) still owes Voyager $650 million making the lender one of its biggest creditors.
The primary focus will shift to recovering additional assets that can be distributed to creditors through, among other things, litigation claims and asset sales as soon as the initial distribution is complete, Hage asserted in the court filing.
Since sliding into bankruptcy last July, Voyager witnessed two failed buyouts. First, Sam Bankman-Fried’s FTX, which itself collapsed, followed by Binance’s US affiliate, which pulled out of the $1 billion deal as a result of increased regulatory scrutiny in the country.
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