Voyager creditors could start seeing funds in the ‘next few weeks’

Funds stuck connected the level of bankrupt crypto broker Voyager Digital whitethorn statesman returning to creditors successful "the adjacent fewer weeks," according to a committee of Voyager creditors.

A May 4 tweet from the Voyager Official Committee of Unsecured Creditors (UCC) said the now-defunct crypto steadfast is successful the last stages of bankruptcy liquidation procedures. The UCC is “hopeful” that “initial distributions volition statesman wrong the adjacent fewer weeks.”

4/ Voyager is besides finalizing everything internally that is indispensable to marque distributions to creditors. We are hopeful that archetypal distributions volition statesman wrong the adjacent fewer weeks.

— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) May 4, 2023

The UCC’s update comes 10 days after Binance.US backed out of its archetypal statement to acquisition $1.02 cardinal worthy of Voyager’s assets with the crypto speech blaming “the hostile and uncertain regulatory clime successful the United States,” arsenic the crushed for abandoning the deal.

Fortunately, Voyager’s restructuring plan includes a “toggle option” that allows the steadfast to prosecute self-liquidation pursuing the determination by Binance.US to propulsion retired of the deal. This allows the bankrupt broker to administer currency and crypto to customers straight via the Voyager platform.

The UCC was dismayed by Binance.US’ move, stating that it would beryllium investigating imaginable claims against the cryptocurrency speech for its last-minute alteration of heart.

1/ Around 2 hours ago, https://t.co/5sjac1H4CW purported to terminate the plus acquisition statement with Voyager. The Committee is incredibly disappointed with this determination and is investigating imaginable claims against https://t.co/5sjac1H4CW.

— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 25, 2023

It’s worthy noting that Voyager indispensable present record the liquidation procedures with the U.S. Bankruptcy Court for the Southern District of New York. According to the committee, parties person 10 days to record immoderate objections with the liquidation procedures.

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The UCC explained if nary objections are filed successful the adjacent 10 days past “Voyager volition “go ‘effective" with the plan.” If an objection is filed, however, the tribunal volition clasp a proceeding to see the objection earlier the liquidation program tin spell through.

97% of the 61,300 Voyager customers who voted connected the court’s restructuring program voted successful favor, though astatine that time, voters believed that Binance.US would get the stranded assets.

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