Cryptocurrency brokerage Voyager Digital is preparing to reopen its app and allow customers to finally withdraw their funds — nearly one year after it filed for Chapter 11 bankruptcy.
Voyager’s bankruptcy plan administrator Paul Hage said in a June 14 court filing that around June 15 the Voyager app would be updated to show the amount available for withdrawal, and estimated that the withdrawal period would start somewhere between June 20 and July 5.
The bankruptcy plan was first approved in court on May 17 and will result in customers initially receiving 35.72% of their claims by withdrawing crypto through the Voyager app or in cash after 30 days.
Voyager Court adjourned for the day
Fee examiners findings approved by the judge
App will come back online on or around 15 June
Estimated window for withdrawals opening 20 June to 5 July
30 days to withdraw once window opens
all creditors will receive 35.72 initial…
— Neville (@neville_p) June 14, 2023
Within the filing, Hage also noted that bankrupt crypto hedge fund Three Arrows Capital still owes Voyager $650 million, so while this first tranche of withdrawals allows for just over 35% of customer funds to be withdrawn “the primary focus will shift to recovering additional assets that can be distributed to creditors” once the initial distribution is completed.
Additionally, an extra $445 million of customer funds could also be made available to creditors pending a final resolution of Alameda Research’s preference claim against Voyager, which is not expected to happen until at least mid-September 2023.
Meditation between @investvoyager and @FTX_Official is anticipated to not start until Fall 2023
Anything less than 100% return would be a devastating result for Voyager creditors! pic.twitter.com/Y6IDAOgeT7
— EthDaddy ☠️ (@ETHjuiced) June 14, 2023
After originally filing for bankruptcy on July 5, Voyager had submitted two prior bankruptcy plan proposals but both had fallen through.
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The first of these was to the United States arm of FTX, FTX.US, but the $1.4 billion deal fell through after FTX filed for bankruptcy.
Subsequently a $1 billion deal with Binance.US also fell through after it backed out on April 25, citing a “hostile and uncertain regulatory climate in the United States.”
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