The bankrupt cryptocurrency broker is in the final stages of the liquidation process after Binance canceled its acquisition deal last week.
Funds locked up in the platform of bankrupt cryptocurrency broker Voyager Digital could begin to return to creditors in “the next few weeks,” according to a committee of Voyager creditors.
And Tweet Voyager’s Official Committee of Unsecured Creditors (UCC) on May 4 said that The defunct cryptocurrency company is in the final stages of bankruptcy liquidation proceedings. The UCC is “hopeful” that “initial distributions will begin in the next few weeks.”
4/ Voyager is also finalizing everything internally that is necessary to make distributions to creditors. We are hopeful that initial distributions will begin within the next few weeks.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023
UCC update It comes 10 days after Binance.US backed out of its initial agreement to buy $1.02 billion in Voyager assets, with the exchange blaming to the “hostile and uncertain regulatory climate in the United States” as the reason for leaving the deal.
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Fortunately, he plan Voyager’s restructuring plan includes a “switch option” that allows the firm to seek self-liquidation following Binance.US’s decision to withdraw from the deal. This allows the failing broker to distribute cash and cryptocurrency to clients directly through the Voyager platform.
The UCC was dismayed by the move by Binance.US, stating that would investigate potential lawsuits against the cryptocurrency exchange for its last-minute change of heart.
1/ Around 2 hours ago, https://t.co/5sjac1H4CW purported to terminate the asset purchase agreement with Voyager. The Committee is incredibly disappointed with this decision and is investigating potential claims against https://t.co/5sjac1H4CW.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 25, 2023
It should be noted that Voyager must now file liquidation proceedings with the US Bankruptcy Court for the Southern District of New York. According to the committee, the parties have 10 days to present any objection to the liquidation proceedings.
The UCC explained that if no objections are filed within the next 10 days, “Voyager will make the plan ‘effective’.” However, if an objection is filed, the court will hold a hearing to consider it before the settlement plan can be carried out.
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An overwhelming majority, 97%, of the 61,300 Voyager customers who voted on the court’s restructuring plan voted in favor, although at the time voters believed that Binance.US would acquire the stranded assets.
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