Bankrupt crypto firm Voyager Digital has achieved a significant milestone in its financial recovery journey by securing $484 million through settlements with FTX, Three Arrows Capital (3AC), and Directors and Officers (D&O) insurance claims.
The majority of the reclaimed funds, approximately $450 million, stem from a settlement with FTX. This settlement, including interest, accounts for about 25% of Voyager creditors’ aggregate claims and is expected to be disbursed shortly.
Voyager filed for Chapter 11 bankruptcy in July 2022 amid challenges in the crypto market, including the collapse of the Terra ecosystem in May.
Voyager has obtained a claim of approximately $675 million from ongoing litigation with Three Arrows Capital, with $20.43 million representing Voyager’s share of the initial distribution from 3AC. Additional payments are expected in the future as assets are sold off and further litigation settlements are secured.
A settlement reached through D&O insurance mediation will allocate at least $14.35 million to benefit Voyager’s creditors.
Despite progress in financial recovery, Voyager faces operational hurdles, including a large number of uncashed checks totaling $17 million. Voyager has set a deadline of April 20 for claiming these uncashed checks, after which they will be voided.
Voyager is also grappling with the aftermath of an FTX data breach, with an ongoing investigation underway to determine the origin and impact of the breach, which compromised creditor data.
As part of its restructuring plan, Voyager customers are expected to recover 35.7% of their claims in cryptocurrency or cash. The exchange settled with the FTC for $1.65 billion in monetary relief in November 2023.
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