Voyager Allows Users To Withdraw Within 35% Cryptocurrency Limit This Month

Key Points:

• After almost a year of freezing, Voyager allows users to withdraw part of their cryptocurrency for the first time.
• From June 20 to July 5, creditors can withdraw about 35% of crypto.
• Initial cryptocurrency distributions will be made to creditors within three to seven calendar days of submitting a withdrawal request.

A document filed with the court on Wednesday outlined a plan to reopen Voyager customers from June 20 to July 5 so that creditors can withdraw about 35% of the cryptocurrency.

Voyager shut down its core business in July 2022, shutting down customer deposits and withdrawals. Paul R. Hage, who oversees the agency’s bankruptcy proceedings, told creditors on file that they can see the initial distribution they are expected to receive through its application on Friday.

Initial cryptocurrency distributions will be made to creditors within three to seven calendar days of submitting a withdrawal request. A month ago, a judge allowed Voyager and its partners to liquidate the company.

Previously, Voyager had needed help to reorganize Chapter 11. The company said it planned to return about $1.3 billion to customers at the time. Reuters once said the expected recall rate was around 35%.

The litigation involving Three Arrows Capital and FTX will significantly increase Voyager’s existing assets, thereby improving the recovery rate of clients’ assets. Reportedly, the company is asking FTX to repay the loan of about $445 million. The company’s claim against 3AC is $650 million.

At the end of April, Binance.US canceled a $1.3 billion deal to buy crypto broker Voyager Digital assets due to a “hostile and uncertain regulatory environment.”

This exit is the latest headache for the bankrupt crypto company. It has been trying to raise capital through asset sales to repay creditors after filing for bankruptcy last year. The company also reached an agreement with FTX, which agreed to buy Voyager’s assets but then collapsed on its own in November (and also filed for bankruptcy).

After Binance.US terminated the asset purchase agreement, Voyager said, “development has been disappointing,” but its Chapter 11 plan allows the company to return crypto and cash directly to customers through its platform.

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