Voyager Digital, which previously filed for bankruptcy, reportedly managed to secure approximately $484.35 million in funds through recoveries from FTX, Three Arrows Capital (3AC), and D&O insurance claims.
On April 10, an update was given to the US Bankruptcy Court in the Southern District of New York about the progress of recovering and distributing assets to creditors following the company’s financial crisis.
Approximately $450 million of the recovered funds, earned from the settlement with FTX, will account for around a quarter (25%) of the initial claims made by Voyager’s creditors. This amount, including accrued interest, is set to be distributed in an upcoming distribution round.
In relation to Three Arrows Capital’s current case, Voyger Digital has obtained a claim worth approximately $675 million. This equates to a proportionate allocation of around $20.43 million for Voyager.
The person in charge of managing the plan expects that more payouts will be made in the near future, as the assets are sold off and money is recovered from lawsuits.
In the D&O insurance mediation, a resolution will be reached, adding at least $14.35 million to the funds for Voyager’s creditors. This is another attempt to alleviate the financial hardship experienced by the company’s shareholders.
The report highlighted the logistical hurdles faced by Voyager, including around 270,000 uncashed checks worth about $17 million.)
A significant portion of these checks, around 187,000, are for amounts less than $25.
Starting from April 20, 2024, any uncashed checks issued by the company will be considered abandoned and voided.
The company is currently dealing with the consequences of a data leak, as investigators work to identify its cause and extent.
The data leak put the creditors’ information at risk, making the bankruptcy process even more intricate.
In July 2022, Voyager first applied for bankruptcy protection during the larger crypto financial crisis that impacted many lending institutions and brokerages.
On May 17, 2023, the US Bankruptcy Court for the Southern District of New York granted approval to Voyager’s bankruptcy plan, after Binance.US revoked their agreement to buy $1 billion worth of assets from Voyager on April 25.
In October 2023, the Commodity Futures Trading Commission (CFTC) accused Stephen Ehrlich, co-founder of Voyager Digital, of committing fraud and failing to register with the agency.
Ehrlich and Voyager were charged by the CFTC with deceiving customers about their financial stability just before the company was on the brink of failure.
During the process of declaring bankruptcy, Voyager revealed that their debts ranged from $1 billion to $10 billion, bringing attention to the grave financial difficulties causing them to seek bankruptcy court’s assistance.
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2024-04-11 11:28