Voyager Approved to Start Repaying Frozen Customers’ Accounts

Bankrupt crypto-lending platform Voyager Digital won court approval on Wednesday to begin paying back its long-beleaguered customers.

To date, customers are only guaranteed 36% of what they owe.

• The approval to begin liquidation proceedings comes more than 10 months after Voyageur froze Customer withdrawals in July 2022, shortly after defunct hedge fund Three Arrows Capital (3AC) declared bankruptcy.
• like mentioned Of Bloomberg, Judge Michael Wiles said, “Nobody is happy with the liquidation,” referring to clients unhappy with the bankruptcy process and outcome. Common criticisms included the cost of bankruptcy, the amount paid to attorneys, the oversight of the case, and the partial returns creditors would receive.
• However, Wiles indicated that this was their only option because Voyager simply lacked the funds to pay customers back in full.
• “Hindsite 20/20 – I’m sure everyone wishes something better had happened,” said Wiles. “We are where we are, trying to do the best in what we are.”
• Voyager’s misfortunes continued long after that filing to bankruptcy in July. Her initial plan to hit A.J purchase transaction With FTX it fell when the cryptocurrency exchange crashed in November. Voyager’s creditors later subpoenaed FTX executives for information about its plan to buy the company, and to investigate whether it was a reasonable offer or just a publicity stunt.
• Voyager’s $1 billion acquisition of Binance US also fell through last month, with the former company pulling out citing “a hostile and uncertain regulatory climate in the US.”
• The lender currently has just $630 million to pay off $1.8 billion in customer claims, according to a May 5 court filing. His holdings may increase if a pending dispute with FTX proves fruitful.