Voyager Digital Will Return 35% of Customer Funds (2024)
Kyle Torpey
·1 min read
Crypto lender Voyager Digital announced on Wednesday that it will be winding down operations and returning approximately 35% of customers' cryptocurrency deposits. The approval of Voyager's liquidation plan by U.S. Bankruptcy Judge Michael Wiles allows the company to distribute around $1.33 billion in crypto assets to its customers, effectively ending its reorganization efforts under Chapter 11. Customers may expect to make withdrawals starting from June 1, with any additional distributions contingent upon future litigation outcomes.
Voyager had filed for bankruptcy protection in July, citing cryptocurrency market volatility and a default on a substantial loan granted to crypto hedge fund Three Arrows Capital (3AC). Despite two unsuccessful sales attempts during its bankruptcy proceedings, Voyager remains entangled in litigation with FTX, seeking to recover $445.8 million in loan repayments made to Voyager before FTX's own bankruptcy. The potential recovery for Voyager's customers hinges significantly on the resolution of the FTX litigation, with expected recovery increasing to 63.74% if Voyager emerges victorious, as stated in court filings.
To facilitate repayments, Voyager plans to refund customers with the same cryptocurrency they held in their accounts. However, for deposits involving unsupported cryptocurrencies and Voyager's proprietary VGX token, customers will receive repayment in the stablecoin USDC instead.
As an enthusiast and expert in cryptocurrency, blockchain technology, and financial markets, my expertise spans both theoretical knowledge and practical application in the field. I've closely followed developments in the crypto space, staying abreast of the latest news, trends, and legal intricacies.
Regarding the article discussing Voyager Digital's winding down operations and subsequent distribution of customers' cryptocurrency deposits, several concepts merit attention:
Cryptocurrency Deposits: These are funds held by Voyager on behalf of its customers in various cryptocurrencies, subject to withdrawal or trading.
Chapter 11 Bankruptcy: Voyager filed for Chapter 11 bankruptcy protection, a legal process that allows companies to reorganize their debts while continuing operations.
Liquidation Plan Approval: The U.S. Bankruptcy Judge Michael Wiles approved Voyager's liquidation plan, permitting the distribution of approximately $1.33 billion in crypto assets to customers.
Repayment Process: Customers can expect withdrawals starting from June 1, with the possibility of additional distributions contingent upon future litigation outcomes, notably regarding the litigation with FTX.
Litigation with FTX: Voyager is engaged in litigation with FTX to recover loan repayments, with the outcome significantly impacting customer recovery percentages. Court filings suggest an increase in expected recovery to 63.74% if Voyager prevails.
Refunding Customers: Voyager intends to repay customers using the same cryptocurrency held in their accounts. However, for unsupported cryptocurrencies and Voyager's VGX token, customers will receive repayment in the stablecoin USDC.
Understanding these concepts is crucial to grasp the implications of Voyager's situation, especially in terms of customer reimbursem*nts, bankruptcy proceedings, and the complexities of dealing with assets in the volatile crypto market.
By May 2023, a restructuring plan proposed that Voyager customers could recoup 35.7% of their claims in either cryptocurrency or cash. In November 2023, the crypto exchange settled with the FTC, agreeing to provide $1.65 billion in monetary relief.
Customers who deposited unsupported cryptocurrencies on Voyager may not receive those specific cryptocurrencies back as part of the repayment process. Instead, Voyager plans to refund customers in the stablecoin USDC for unsupported cryptocurrencies and Voyager's proprietary VGX token deposits.
Completing the Chapter 11 plan that the bankruptcy court approved in March 2023, Voyager issued approximately 627,000 checks worth $131 million for the initial distribution to creditors.
Voyager has filed a Chapter 11 bankruptcy petition. According to the company, account holders with cryptocurrencies in their Voyager accounts will receive a combination of cryptos, proceeds from Three Arrows Capital recovery, common shares in a newly reorganised company and VGX tokens.
If you invested with Voyager Digital and were adversely affected, you might be eligible to join or file a class action claim. Contact us today at 305-740-1423 for a FREE CASE REVIEW with one of our experienced attorneys.
According to our current Voyager Token price prediction, the price of Voyager Token is predicted to rise by 19.17% and reach $ 0.094343 by August 14, 2024. Per our technical indicators, the current sentiment is Neutral while the Fear & Greed Index is showing 65 (Greed).
The Federal Trade Commission announced a settlement with bankrupt crypto company Voyager that will permanently ban it from handling consumers' assets and is filing suit against its former CEO, Stephen Ehrlich, for falsely claiming that customers' accounts were insured by the Federal Deposit Insurance Corporation (FDIC) ...
If you received a settlement (regardless how small) from the bankruptcy proceedings in exchange for your digital assets, this is considered a sale and you should calculate your capital loss (or gain) on Form 8949 and report it on Schedule D (Form 1040) for the year you received the settlement.
Voyager 2 has left the Sun's heliosphere and is traveling through the interstellar medium, though still inside the Solar System, joining Voyager 1, which had reached the interstellar medium in 2012. Voyager 2 has begun to provide the first direct measurements of the density and temperature of the interstellar plasma.
Bankrupt crypto firm Voyager Digital has made progress toward compensating its creditors by securing $484 million through settlements with FTX, Three Arrows Capital (3AC) and Directors and Officers (D&O) insurance claims.
Voyager, a crypto trading platform founded in 2018, was one of many digital assets firms to go bust and file for Chapter 11 bankruptcy amid a crash in crypto prices in 2022. The exchange gained court approval last May to wind down operations and pay back customers a portion of what they're owed.
If you don't transfer your crypto in this timeframe, you'll receive your initial recovery in U.S. dollars "at a later date, subject to market fluctuations." Find Voyager's full announcement here: How to Withdraw Crypto. According to CoinDesk, Voyager's creditors will recover an estimated 36% of their assets.
Great question. Your US dollars held on Voyager are insured up to $250,000 by our banking partner, Metropolitan Commercial Bank, so your cash is safe with us.” Another email reassured consumers that “the cash you hold with Voyager is protected up to $250,000 – which means it's as safe with us as at a bank.”
The 46-year-old Nasa spacecraft is humanity's most distant object. A computer fault stopped it returning readable data in November but engineers have now fixed this. For the moment, Voyager is sending back only health data about its onboard systems, but further work should get the scientific instruments back online.
If you meet the criteria to consider your investment as “worthless”, you can claim the loss. However, by doing so you are relinquishing your rights to claim the assets in the future. Investment losses can offset your capital gains during the year and up to $3,000 of income.
The Voyager Token price prediction for 2025 is currently between $ 0.079145 on the lower end and $ 0.097963 on the high end. Compared to today's price, Voyager Token could gain 21.74% by 2025 if VGX reaches the upper price target.
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