A
bankruptcy court in the United States has sanctioned the liquidation plans of
bankrupt crypto lender Voyager Digital, permitting the firm to end its Chapter
11 reorganization efforts. Judge Michael Wiles gave the approval on Wednesday
during a hearing in Manhattan, according to court documents seen by
Reuters.
Tomorrow’s hearing on the Liquidation Procedures will be going forward given that one creditor submitted a letter to the Court in response to the procedures. We will provide another update after the hearing concludes.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 16, 2023
The crypto
lender’s lawyers have previously said the firm will self-liquidate and
shut down its
operation after Binance.US abandoned
a $1 billion deal to purchase the firm’s assets. The American arm of the leading
cryptocurrency exchange did not give a specific reason for backing out but
hinted at “the hostile and uncertain regulatory climate in the United States.”
https://t.co/AZwoBOgsqS has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager.
While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate…
— Binance.US 🇺🇸 (@BinanceUS) April 25, 2023
Voyager
filed for bankruptcy protection in July last year in the aftermath of the
Terra-LUNA collapse which gripped the global cryptocurrency industry. Before
its collapse, the crypto lender sent a notice of default to Singapore-based
Three Arrows Capital (3AC) over its failed payments on a crypto loan of over
$670 million. However, 3AC was also affected by the downturn in the market and was later ordered by
a British Virgin Islands court to liquidate its assets.
Furthermore, in September last year, crypto exchange FTX’s US affiliate won a $1.4 billion deal to purchase the assets of Voyager Digital.
However, the deal fell apart in the subsequent month after FTX’s collapse.
Voyager Reveals Customer Fund Recovery Expectation
Meanwhile,
Voyager Digital in the new court filing said it expects its customers to be refunded about 35% of their crypto deposits in the wake of the planned liquidation.
Reuters reports that Judge Wiles’ approval of Voyager’s liquidation permits
the bankrupt crypto lender to return about $1.33 billion in crypto assets to
its customers.
On the
other hand, as FTX presses on with its
asset recovery effort, the equally bankrupt cryptocurrency exchange is seeking
to retrieve about $445.8 million in loan repayments made to Voyager before its
demise. Voyager winning
the litigation could mean a higher 63.74% fund recovery rate for its customers, the court filing also shows.
Belgium’s crypto ads rules kick in; FINMA’s action; read today’s news nuggets.
A
bankruptcy court in the United States has sanctioned the liquidation plans of
bankrupt crypto lender Voyager Digital, permitting the firm to end its Chapter
11 reorganization efforts. Judge Michael Wiles gave the approval on Wednesday
during a hearing in Manhattan, according to court documents seen by
Reuters.
Tomorrow’s hearing on the Liquidation Procedures will be going forward given that one creditor submitted a letter to the Court in response to the procedures. We will provide another update after the hearing concludes.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 16, 2023
The crypto
lender’s lawyers have previously said the firm will self-liquidate and
shut down its
operation after Binance.US abandoned
a $1 billion deal to purchase the firm’s assets. The American arm of the leading
cryptocurrency exchange did not give a specific reason for backing out but
hinted at “the hostile and uncertain regulatory climate in the United States.”
https://t.co/AZwoBOgsqS has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager.
While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate…
— Binance.US 🇺🇸 (@BinanceUS) April 25, 2023
Voyager
filed for bankruptcy protection in July last year in the aftermath of the
Terra-LUNA collapse which gripped the global cryptocurrency industry. Before
its collapse, the crypto lender sent a notice of default to Singapore-based
Three Arrows Capital (3AC) over its failed payments on a crypto loan of over
$670 million. However, 3AC was also affected by the downturn in the market and was later ordered by
a British Virgin Islands court to liquidate its assets.
Furthermore, in September last year, crypto exchange FTX’s US affiliate won a $1.4 billion deal to purchase the assets of Voyager Digital.
However, the deal fell apart in the subsequent month after FTX’s collapse.
Voyager Reveals Customer Fund Recovery Expectation
Meanwhile,
Voyager Digital in the new court filing said it expects its customers to be refunded about 35% of their crypto deposits in the wake of the planned liquidation.
Reuters reports that Judge Wiles’ approval of Voyager’s liquidation permits
the bankrupt crypto lender to return about $1.33 billion in crypto assets to
its customers.
On the
other hand, as FTX presses on with its
asset recovery effort, the equally bankrupt cryptocurrency exchange is seeking
to retrieve about $445.8 million in loan repayments made to Voyager before its
demise. Voyager winning
the litigation could mean a higher 63.74% fund recovery rate for its customers, the court filing also shows.
Belgium’s crypto ads rules kick in; FINMA’s action; read today’s news nuggets.