Voyager Customers Could Recover 72% of Frozen Crypto under FTX Deal

| Updated
by John K. Kumi · 2 min read
Voyager Customers Could Recover 72% of Frozen Crypto under FTX Deal
Photo: Depositphotos

Voyager has also clarified that its customers would be transitioned onto the FTX platform after the completion of the deal.

In early July, Voyager Digital filed for bankruptcy under Chapter 11 in the Southern District Court of New York days after pausing withdrawals. According to the filing, the company was on the hook for between $1 billion to $10 billion in assets to over 100,000 creditors. Recently, FTX US showed interest in acquiring Voyager but its earlier bid was rejected as the bankrupted company is seeking to sell at $1.42 billion according to reports.

According to court documents, Voyager customers have a chance of obtaining 72% of the value of their account under the FTX deal. During the court hearing, United States bankruptcy judge Michael Wiles clarified that it will not be completed unless it receives creditors’ approval and he approves the payment plan.

“If the plan falls apart, there’s no part of this agreement that survives,” said the court. In addition, the court clarified that there is a clause called “fiduciary out” that empowers Voyager to cancel the deal when there is any presented offer that provides a better outcome for creditors.

Voyager has also clarified that its customers would be transitioned onto the FTX platform after the completion of the deal. According to reports, FTX has a tentative plan of ensuring that all priority claims are paid in full in addition to allowing other account holders to recover about 72% of the value of their account. FTX bids include a fair market value of all of Voyager’s cryptocurrencies at a to-be-determined date. This is said to be pegged at a current market price of $1.31 billion and an additional $111 million increment value.

It is important to note that the amount does not include the funds it may recoup as part of the claim against Three Arrows Capital (3AC). This comes as part of the demand as 3AC defaulted on its loan repayment to Voyager.

In June, Voyager issued a notice of default to 3AC for failing to make a required repayment on a loan of 15,250 Bitcoin.

Crypto lenders including Voyager were in high demand during the Covid providing lending services in Cardano, Bitcoin, etc as depositors were hooked up to the high-interest rate and easy access to loans barely offered by the traditional banks.

Blockchain News, Cryptocurrency news, News
John K. Kumi
Author John K. Kumi

Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.

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