Voyager Creditors Might Start Seeing Funds in the Upcoming Weeks

Gemini Welcomes Voyager Customers as Customer Withdrawals Begin
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Voyager has announced that it has entered the final stages of liquidation procedures a week after Binance backed out on an acquisition deal. Based on the development, it is believed that all funds stuck on the now-bankrupt brokerage may return to creditors within the upcoming few weeks. Moreover, at the time of Binance’s backing, the exchange blamed the hostile and uncertain regulatory scrutiny within the United States as the reason for abandoning the deal.

However, Voyager expressed dismay at Binance’s move and stated that it would proceed to investigate all potential claims against the cryptocurrency exchange as a result of Binance changing its mind last minute. The only option Voyager is now left with is to file liquidation procedures with the US Bankruptcy Court for the Southern District of New York

According to the terms specified by the committee, the involved parties have approximately 10 days to file any possible objections regarding the liquidation process. The Official Committee of Unsecured Creditors mentioned that if no objections are raised within the next 10 days, then Voyager will go exactly according to plan. In case any objection is filed, the court would listen to the objection before the liquidation plan could go through.

Voyager further added,

“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.”

The Turbulent Bankruptcy of Voyager

The Turbulent Bankruptcy of Voyager

Voyager had to file for bankruptcy following the sudden collapse of LUNA, and the firm has been struggling with liquidity issues ever since then. However, the decline of the firm seemed imminent. At the time, both Coinbase and FTX appeared to be the highly serious bidders for acquiring Voyager Digital, but it was FTX that managed to sign an agreement with Voyager for acquiring the entirety of its assets.

The court had approved a deal, but it ended up failing as FTX filed for bankruptcy not too long after that. However, as long as the deal with Binance is concerned, the exchange’s $1 billion bid was subject to a number of setbacks right from the start. 

The US watchdogs were increasingly against the deal and continuously highlighted the lack of clarity revolving around the deal. However, the increased pressure set the stage for Binance to abandon the deal as a whole.


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