Voyager Customers May Get 35% Return, as Judge Approves Liquidation Plan

Voyager will take its first steps to return around $1.3 billion to customers following the approval from a judge on Wednesday, May 15. 

According to a Reuters report, Judge Michael Wiles approved the liquidation plan filed by Voyager on May 5.

However, while Voyager’s estate has $1.3 billion or “75.68% of the aggregate value of customer claims against Voyager’s estate,” the report says it will only have an initial estimated recovery of 35%.

Estimated recoveries could increase if it is successful in getting around $445 million in loan repayments owed to the lender by FTX prior to its collapse. It is also a creditor in the liquidation of Three Arrows Capital and may be able to return recoveries based on that outcome as well.

“If the Debtors prevail in the FTX / Alameda preference dispute and further pro rata recoveries are disbursed to Holders of Account Holder Claims and OpCo General Unsecured Claims on account of the FTX / Alameda preference claim reserve, estimated recoveries to Holders of Account Holder Claims will increase,” the report said.

According to the website, customers “may choose either to take your initial recovery in crypto through the Voyager platform or to wait until the crypto withdrawal period is over to receive your initial recovery in U.S. dollars.”

The bankrupt crypto lender was forced to pivot its bankruptcy plan in early May after Binance.US announced that it was pulling out of a $1 billion deal to buy Voyager’s assets.