- Voyager Digital customers could soon start getting their payouts from the bankrupt exchange
- Binance.US pulled out of a deal for the exchange which meant that Voyager was left with liquidation as its only option
- Creditors can expect a 73% payouts, but the Alameda lawsuit could drop that
Creditors of the bankrupt Voyager Digital exchange could start getting their payouts in the “next few weeks” according to the creditors’ committee. The Official Committee of Unsecured Creditors tweeted yesterday to reveal that Voyager is “finalizing everything internally that is necessary to make distributions to creditors,” just days after Binance.US pulled out of a takeover deal. It was feared its withdrawal might scupper the deal, but this appears not to have been the case and those owed funds by the exchange can look forward to receiving 73% of their funds back.
Rocky Road to Resolution
Voyager’s route through bankruptcy has been far from straightforward. The platform froze withdrawals and filed for Chapter 11 bankruptcy in July last year as the crypto contagion took hold, but due to its Singapore license it was seen as a tempting entity for other exchanges looking to expand. FTX was the original buyer back in September but this collapsed when FTX itself imploded, leaving Binance.US a clear run.
Binance indeed took the opportunity and agreed a deal, but this was torpedoed when the Commodity Futures Trading Commission (CFTC) filed a lawsuit against the exchange and its CEO, Changpeng Zhao, with Binance.US pulling out of the deal at the end of April.
Voyager said at the time that this wouldn’t affect its bankruptcy process, and this seems to have been the case; the restructuring plan features a “toggle” that would allow Voyager to liquidate if Binance.US pulled out, which was activated.
Before Voyager can proceed with its liquidation however, it must initiate the liquidation process by submitting the required documentation to the U.S. Bankruptcy Court for the Southern District of New York. Once filed, interested parties will have 10 days to raise objections to the plan.
Objections Could Delay Process
Assuming no objections are raised, Voyager plans to proceed with the implementation of the plan and begin the distribution process as soon as possible. However, if any objections are raised, the Court will schedule a hearing to evaluate and address the objection before the plan can be executed.
The only potential fly in the ointment is the $445 million lawsuit filed by Alameda against Voyager over loan repayments, which could reduce payouts by as much as 25%.
